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Islam And Bitcoin - Is Bitcoin Halal?

Islam And Bitcoin - Is Bitcoin Halal?

What is Bitcoin? Is Bitcoin halal? Is Bitcoin haram? Everything you'd like to know about Bitcoin in the world of Islam...and more! Welcome toIslam and Bitcoin. The website that intends to be the number one website for all information related to Bitcoin and other digital currencies as it relates to Islam inshallah (God willing). If you've made it to this website then you must have some questions such as, is Bitcoin halal? Is Bitcoin haram? Is Bitcoin mining halal? Is Bitcoin trading halal? Is investing in Bitcoin halal? Is cryptocurrency halal? Is Bitcoin legal in Saudi Arabia? Inshallah we will explore these issues and more as the goal ofIslamandBitcoinis to make the understanding of Bitcoin and cryptocurrency easy for its audience and to also serve as a hub for Muslims (scholars and everyday Muslims) who want to learn more about Bitcoin and the technology behind it even beyond the basics of halal and haram. So, if you would like to learn more then please do check out our blog where you will find articles and videos related to Bitcoin and definitely dont forget to check out the official Islam and BitcoinPodcast Series ; where we will, inshallah, deliver engaging dialogue with some prominent people involved with Bitcoin and other digital currencies as well as explore how this new technology could potentially benefit humanity and the world at large. I believe that Bitcoin, and cryptocurrency as whole, has the potential to be of wonderful benefit to humanity and the understanding of Bitcoin by the average non-technical person is of the utmost importance if humanity is to ever truly benefit from this technology. Whether Bitcoin is here to stay or fade away like a shooting star is truly only known by Allah, but as a Muslim, I am commanded and encouraged to do good deeds, an Continue reading >>

Is Bitcoin Permissible In Islam?

Is Bitcoin Permissible In Islam?

First let's get some misconceptions out of the way. No. BitCoin mining is a cryptographic process that has a finite, well defined and deterministic. It does require a lot of computational power, but there is no luck involved. If it was luck based, then there would be a chance (however small) for your tiny ARM processor to find a BitCoin every now and then. That's not true. Yes they do. As you've noted, mining BitCoin requires a lot of computational power and that of course includes the infrastructure behind it (equipment, time, electricity ... etc). That alone gives it value. Also, the fact that people are willingto buy it gives it value. Think of diamonds. They definitely have value. It's not because they are rare (diamonds are much more prevalent than people are lead to believe), but because the market gives it value. The laws of Islam require halal currency to have intrinsic value, and digital currency seems to fit that bill perfectly. Unlike fiat currency, which is represented by a paper medium susceptible to damage, loss, and theft, Bitcoin has intrinsic value as its worth can not be tampered with through duplication and other illegal means. Additionally, halal currency should be deflationary in nature, which leads to fluctuation in value. The Bitcoin value has gone up over the course of the past seven years, albeit there have been several stumbles along the way. Gold is halal as well, as there is a limit supply available and the prices are anything but stable. One could even go as far as saying how Bitcoin is more halal under the laws of Islam than paper currency will ever be. I am not an Islamic scholar. Yet I am a muslim and earning *HILAL* income is as important to me as anyone else in Islam. I started doing some research on this several months ago, and came t Continue reading >>

Cryptocurrency And Islam

Cryptocurrency And Islam

Cryptocurrency is all the rage nowadays so let's see what Islam has to say about it. Islam which is the worlds second-largest religion is also the fastest growing religion in the world. Presently there are approximately 1.6 billion Muslims in the world comprising about 23 percent of the worlds population. Islam offers its own unique banking and finance popularly known as Islamic Banking and Finance. This growing financial system is based on fundamentals which originated from the Holy Quran and ahadith where activities involving riba (interest), gharar (uncertainty) and maysir (gambling) are strictly forbidden. As the Islamic Banking and Finance Industry continues to grow, more innovations will take place, and one of the recent innovations that have taken the world by storm amongst others include the developments around blockchain such as cryptocurrencies. What is Cryptocurrency and what do Islamic scholars think about it? Cryptocurrency is a medium of exchange, created and stored electronically in the blockchain, using encryption techniques to control the creation of monetary units and to verify the transfer of funds. It has no physical form and no central authority or middlemen that control it. Bitcoin is the best known example of cryptocurrency, comprising the bulk of the market share, at 60.8%. Bitcoin is a digital currency that enables payment in a decentralised peer-to-peer (P2P) network that is powered and approved by the consensus of its users. The complete process of how bitcoin works has been outlined below. To understand whether Islam permits the usage of bitcoin, it will be assessed from four angles namely value of money, payment network method, concept of gharar and serving the real economy. For value of money, Islam deliberates on three elements, namely ma Continue reading >>

Donate With Bitcoin - Hhugs

Donate With Bitcoin - Hhugs

Make a Bitcoin donation to HHUGS and help change lives Make a Bitcoin donation to HHUGS and help change lives. At HHUGS, we are always looking for ways for people to support us with ease. Thats why were now accepting Bitcoin donations. As the first Muslim charity to accept Bitcoin donation,a form of digital currency, we hope this will enable us to continue and expand our work for families around the country. By donating your bitcoin, you can support some of the most neglected families in the UK, largely comprising of vulnerable women, innocent children and the elderly. According to IslamWeb (subsidiary of Qatari Ministry of Endowments), cryptocurrencies take the ruling of fiat currencies, and are therefore subject to the laws of Zakat and interest. Read more here . As the first Muslim charity to accept Bitcoin, we are ahead of the curve. We hope through such an innovative currency as Bitcoin that we can open up new avenues for people to support HHUGS and reach new donors and supporters. From our observation of future trends, it seems likely that we will receive digital currency as a donation at some point and we want to be prepared for that eventuality. Yes HHUGS accepts zakah. You can read more about how we utilize zakah here. If you are making a zakah donation, you will have to notify us so we can ensure that the funds are allocated to zakah eligible beneficiaries and projects. This can be done by sending us an email to [email protected] with the amount donated. Bitcoin works in the same way as a cash donation in that anyone can send to us without providing their details. While bitcoin donations are anonymous, we encourage donors to notify us of when they have made a donation so that we can keep a record and contact you in future, with your permission. This can be do Continue reading >>

How Does Sharia View Crypto-currencies?

How Does Sharia View Crypto-currencies?

At a recent workshop of Islamic Finance practitioners and crypto/digital currency developments organized by a newly formed body, the Islamic Finance and Crypto-Currency, IFCC, leadership summit in London, participants spoke their mind about the topic. As an Islamic Finance Sharia Scholar, I expressed my feelings. Firstly, as is the case with media, regulators, bankers, and financial institutions, current vocabulary fails to properly express an emerging phenomenon of Blockchain technology and digital/virtual/crypto currencies. Attitudes vary between high hopes and sceptics. Sharia opinions are no exception. Cursory fatwas, or Sharia opinions, from Malaysia and Qatar are sceptical. Some declare it outright impermissible, due to its intangibility, volatility, and non-convertibility into goods or services. There is no shortage of Sharia opinion on the internet. Many scholars are comfortable treating a crypto-currency as being at par with fiat currency notes and coins. Those include Islamweb.net (fatwa # 251170, 231460 and 11074) and Dr Munzir Kahf of Qatar Faculty of Islamic Studies. Some enthusiasts declare it most akin to be compatible with principles of Islamic Sharia law and more suitable to Islamic modes of finance such as Blossom Finance, a microfinance firm based in Indonesia. Matthew J. Martin is the founder of the entity. The history of money began well before the advent of Islam and Islamic Civilization. Roman and Byzantine gold, silver and copper coinage were common in pre-Islamic Arabia. During 40 years of Caliphs and early 30 years of the Ummayad period these foreign coins remained in circulation. It was during Hijra years 70s (CE 690s) onward that Islamic coinage came into circulation. For the best early part of Islamic civilization, means of payment remained Continue reading >>

Ruling On Dealing With The Islamic Forex - Islamqa.info

Ruling On Dealing With The Islamic Forex - Islamqa.info

125758: Ruling on dealing with the Islamic Forex I know that dealing with the regular Forex system involves riba and other infractions, and it is prohibited as was stated by the Fiqh Council. My question has to do with dealing with the Islamic Forex, which also has some infractions, but there is no blatant riba involved in it. All I do there is just one type of business by which I make money, which is buying gold when it is cheap and selling it when it is expensive, and I make money as a result of the difference in price. I do not deal with anything else, but I make a great deal of profit from that. But I found out that the Forex does not make me trade with the money that I deposited there; rather that is only an insurance against loss, in the event of loss, so that they can take their rights. The dealing is done via financial boosting which multiplies the sum of money you deposit by as much as one hundred times, i.e., I deposit one thousand dollars, and I can carry out a transaction worth one hundred thousand dollars, and they do not take any interest for that, but they benefit from the difference in price between the request and the sale. In other words, they do not give me a loan for nothing, but because when I borrow, I will do this transaction through them and they will make money from it, even though they do not charge any interest. What is the ruling on the money that I make, and if there is any sin, who bears that burden? If I give some of that money in charity, will that make it halaal? Dealing with margins, or with the Forex system, is a matter concerning which the Islamic Fiqh Council issued a statement that it is haraam and is not allowed. You may see the text of this statement in the answer to question no. 106094 . The so-called Islamic Forex is not free o Continue reading >>

Getting Rid Of Haram Earnings

Getting Rid Of Haram Earnings

Assalaamu alaykum. I have a question regarding doing business based on funding that is mixed from permissible and prohibited sources. I have several scenarios: - The first scenario is the following:.. More How to dispose of money if its rightful owner cannot be reached Hello, I used to be a crypto currency trader trading a currency known as bitcoin, to trade bitcoins you need to use an exchange market. The exchange market I used was called Mintpal. This exchange had problems.. More As Salaamu AlaykumA group of Muslim brothers work for the State of California, several years ago the governor force public workers to take furlough (2 free days without pay). The employees Union sued the.. More In Fatwa No : 90152 u said that it is ok to keep haram money but only if u r poor. I am 17, living with my parent, got no job, and would be poor if I didn't have my parents and I also have haram money which.. More Money received by mistake from welfare office A few years ago I received over 220 from the welfare office on unemployment benefit. Every 2 weeks I get 110 but on that week I got an extra 100. The jobcentre at the time sent me a.. More Earnings from an unlawful business after repentance Assalamu Aleikum I have a question regarding a business that I was running which I quit after someone pointed out that might not be permissible and because me having doubts of it being haram I stopped everything,.. More How to repent from neglect of prayer and living on unlawful earnings Salam. I hope u can answer my questions as I cant find answers. I've never prayed before but believe in Allah & His Messenger. I've said the shahadah many times but never followed it up with acts of.. More The interest should be estimated and then given as charity My grandfather died and left some funds in the Continue reading >>

Conspiracy Theory From Islamqa.info

Conspiracy Theory From Islamqa.info

For muslims who insult, mock and denigrate anti-jew muslims, in order to defend their superior jewish mates, this may not be a good read. Islamqa has added itself to a list of "anti-semitism" conspiracy theory by accusing the innocent as doves jews of being linked to freemasonry. What a 'lie'! How dare islamqa for 'lying' against the infallible jews. He even uses 'Protocols of learned elders of zion.' Freemasonry is a secret political society whose goal is to put an end to all religions and good morals, and to replace them with man-made laws and non-religious systems. It strives to provoke ongoing revolutions and to replace one regime with another, on the basis of its call for freedom of thought and freedom of belief. This is what they have stated clearly. This is what was announced by one of them in the Students Conference held in 1865 CE in the city of Liege which is considered to be one of the centers of Freemasonry. He said: Man must prevail over God, and declare war on Him. He should demolish the heavens and tear them like paper. It says in the Masonic Grand Lodge (1922, p. 98): We will strengthen the freedom of individual thought with all the powers at our disposal, and we will declare war against the real enemy of man, which is religion. The Masons say that Masonry takes the human soul as its object of worship. They say: It is not enough for us to prevail over the religious people and their places of worship, rather our basic goal is to wipe them out of existence. Minutes of the World Masonic Conference, 1903 CE, p. 102. They say: Freemasonry will take the place of religion and its Lodges will take the place of places of worship and there are many other statements which clearly point to the intensity of their enmity towards religion and their uncompromising war Continue reading >>

Bitcoin Is Halal Under The Laws Of Islam

Bitcoin Is Halal Under The Laws Of Islam

Bitcoin can do a world of good all over the globe, and the technology powering the network offers a ton of potential. But not everyone is looking for a solution in the financial sector or any other industry where blockchain technology might play a significant role. Furthermore, there is the topic of religion, which begs the question whether or not Bitcoin can be in conflict with ones beliefs. For example, is the involvement in Bitcoin halal under the laws of Islam, and is there an intrinsic value to the popular digital currency? Also read: Bitcoin Micropayments Make A Lot of Sense For The Brave Browser Currency is a strange concept , as it is very hard to define what makes a particular medium of transferring value legal or not. Before money in its current form was created, people used barter to complete transactions, with the value of goods changing on a regular basis. But there is also the religious concept to take into account, as every belief has their own standards regarding money and currency. Especially when it comes to exchanging one type of currency for another, things are not as clear under the laws of Islam . In the Western world, people take this type of business for granted and rarely give it a second, though. But certain religions are quite strict on currency exchange, begging the question what the stance of the Islam is. Based on the answer provided by Islam Today , it looks like the exchange of currency is a permissible form of business. However, both parties have to receive the money for this transaction by hand, and delays are not permitted. While these rules were created for precious metals, the same principles apply to other forms of currency. When reading that question out loud for the first time, some people might shake their heads and laugh out lo Continue reading >>

A Saudi Cleric Says 'bitcoin' Is Haram ... Wait, What?

A Saudi Cleric Says 'bitcoin' Is Haram ... Wait, What?

A Saudi cleric says 'bitcoin' is haram ... wait, what? "It's an open gate for money laundering, drug money and haram money." Jeddah-based cleric Assim al-Hakeem never fails to surprise us with his fatwas (religious edicts), but this time his views on the digital currency, bitcoin, really take the cake. During his program Ask Zaad , al-Hakeem voiced concern over the use of bitcoin, claiming it is prohibited under Islamic law. "We know that bitcoins remain anonymous when you deal with it which means that it's an open gate for money laundering, drug money and haram money," al-Hakeem said, according to Al Araby. Al-Hakeem also points out that since bitcoin is a modern currency, it has not been discussed by scholars in the past. "Bitcoin is something that is recent and new and there are a lot of serious concerns when it comes to dealing with it ... whether it's from the origin or from the aspect of sustainability and security," al-Hakeem said . He goes on to question bitcoin's dramatic increase in value overnight. "As of today, one bitcoin that was [worth] 0.1 cents is now equivalent to $11,000 plus. This is ridiculous.This is not something physical you can touch," he adds. His statements come after bitcoin's value spiked, with its trade value reaching$12,450 as of Wednesday morning. Bitcoin is forbidden under Islamic law because it is "ambiguous and provides anonymity to criminals" "Muslims should not get involved in such dubious transactions simply to make a quick buck, to make a quick profit. This is not an Islamic concept," al-Hakeem said. Bitcoin 'not compatible with Islam', Turkey's religious authorities say pic.twitter.com/3hAJkMBCFJ In November, Turkey's top religious body claimed that the cryptocurrency is "not compatible with Islam." "Buying and selling virtual cu Continue reading >>

Is Bitcoin Halal? How Cryptocurrency Conforms With Islam And Sharia

Is Bitcoin Halal? How Cryptocurrency Conforms With Islam And Sharia

Is Bitcoin Halal? How Cryptocurrency Conforms with Islam and Sharia How does Islam view Bitcoin and other cryptocurrencies and what are the possibilities for Bitcoin in the Islamic world? Islam is the fastest growing religion in the world, according to Pew Research Center , there are about 1.6 bln Muslims in the world and they make up roughly 23 percent of the worlds population. The majority of the worlds Muslims live in Asia Pacific in countries like Indonesia and India even though traditionally areas of the Middle East and Northern Africa are traditionally associated with Islam. There are unique needs of Muslims when it comes to banking and finance. The Islamic Canonical Law, popularly known as Sharia is based on the teachings of the Quran and prohibits certain activities such as acceptance of specific interest which is considered usury (Riba) or investments in businesses which are contrary to Islamic acceptance for example alcohol. Recent interest in Islamic banking has risen with even the International Monetary Funds executive board holding the first ever discussion on Islamic Banking. Fintech and developments around Blockchain have been taking the world by the storm. The rise of cryptocurrencies like Bitcoin and developments in Blockchain have also touched the Islamic world . In fact, the UAE has already got a Bitcoin exchange by the name of BitOasis and they also offer services like a Bitcoin Wallet. BitOasis also offers services in Qatar, Kuwait, Bahrain and Saudi Arabia. There are also services in the APAC region like Bitcoin Indonesia and Coinbox in Malaysia that offer Bitcoin-related services. According to the paper Bitcoin in Islamic Banking and Finance by Charles W. Evans, The relationship between a distributed, autonomous Blockchain management systems (BMS Continue reading >>

Ruling On Trading In Currencies - Islamqa.info

Ruling On Trading In Currencies - Islamqa.info

I would like to know about investment in curreny (FOREX Market). Like now a days, its very common that people invest in Euro to earn profits. One broker keeps on calling me to invest USD in Euro. Is trade in currency halal?. Dealing in currencies is permissible so long as the exchangetakes place in the same sitting as the contract is made. It is permissibleto sell euros for dollars so long as the exchange takes place in the samesitting as the contract is made. But when the deal is concerning the sametype of currency, such as selling one dollar for two dollars, that is notpermissible because it is a type of riba. In that case they should be ofequal amounts and the exchange must take place in the same sitting as thecontract if the exchange is concerning one type of currency. The evidencefor that is the report narrated by Ubaadah ibn al-Saamit (may Allaah bepleased with him) who said: The Messenger of Allaah (peace andblessings of Allaah be upon him) said: Gold for gold, silver for silver,wheat for wheat, barley for barley, dates for dates, salt for salt, like forlike, same for same, hand to hand. If the types are different then sellhowever you like, so long as it is hand to hand. Narrated by Muslim, 1587. It says in Majmoo Fataawa Ibn Baaz (19/171-174): Dealing in currency,buying and selling, is permissible, but that is subject to the conditionthat the exchange be hand-to-hand if the currencies are different. If aperson sells Libyan currency for American or Egyptian or whatever currencyhand to hand, there is nothing wrong with that, such as if he buys dollarsfor Libyan currency hand to hand, exchanging it in one sitting, or he buysEgyptian or English currency etc for the Libyan or whatever currency hand tohand, there is nothing wrong with that. But if there is a delay, t Continue reading >>

Is Bitcoin Halal? What Scholars Say And Where It Stands In Islamic Banking And Finance

Is Bitcoin Halal? What Scholars Say And Where It Stands In Islamic Banking And Finance

Is money is money is money? While this appears like a troll-like, joke question, the answer is a bit more complex than that. Religion can play a big part in the governance of financial systems. Islam in particular has very clear guidelines based on Islamic principles. As Bitcoin enters mainstream adoption across the globe, one begs the question: Is Bitcoin complementary with Islamic banking and finance? Islam requires any currency to hold intrinsic value before it can be considered permissible. In other words, money that is created out of thin air is not (halal) money, because it is not backed up by any commodity of actual value. In case you are new to the financial sector, know this: it is common, a standard practice, even, for financial institutions to create money without intrinsic value. In order to decide whether bitcoin holds intrinsic value, one must look at its qualities in comparison to other types of commodities which Islam permits. Two great examples are gold and silver. During the course of history, these precious metals have been used as currencies, in the form of the gold dinar and the silver dirham . Some countries around the world still accept it as legal tender. While bitcoin can only exist electronically, it shares a lot of qualities with gold and silver. Both are mined, scarce, value dictated by supply and demand, and can be used as currency on its own. This handy infographic illustrated this point. Can you call bitcoin money? Well, bitcoin is used as a medium of exchange - you can use it to pay for products and services. Bitcoin is also an economic standard and measurement of value - the price fluctuates based on market supply and demand. For all intents and purposes, bitcoin is certainly used as money. However, Mohammad Mahmoud Ibrahim Tayel argued Continue reading >>

Is Trading Bitcoins/altcoins Halal Or Haram? (sunni View)

Is Trading Bitcoins/altcoins Halal Or Haram? (sunni View)

Is trading Bitcoins/Altcoins Halal or Haram? (sunni view) I would like to know if trading with Bitcoin and altcoin to make profit is halal? I've searched for the subject but I only found different opinions for currency trading. I think that crypto-currency is little bit different, it's not stored in banks, I can keep it in my machine, and trading purposes I had to store my coins in a website then for every exchange there's some fees, these fees differ from one trading platform to another. The fees may be composed of: Fees for exchange which are imposed by the currency. Fees for the website to keep the trading platform running. This is interesting. I've never heard about it before. I found the bit-coin forum. For FATWA for this, It's better to wait for the appropriate answer Fatemeh Jul 9 '14 at 17:01 Bitcoin is not a traditional note based currency but similar to commodities like gold, silver etc , some would call it a cryptocommodity which is indeed intrinsically accountable and can be proven to exist if required. Other currencies like notes are impossible to trace intrinsically and are essentially contract papers whereas a bitcoin stores the entire transaction history(under the larger bitcoin framework). Islam requires accountability of the commodity spent and you just cant duplicate currency notes to fulfill demand like how govts do with paper currency. Inbuilt Accountability of bitcoin allows the bitcoin commodity to be traceable and thus cant be duplicated on demand. Far from haram I would say that bitcoin is the currency best suited according to the laws of Islam which required the currency to have intrinsic value not just a signed piece of paper whose value can be lost due to various circumstances. The best thing about bitcoin is that it is not controlled by cen Continue reading >>

Ruling On Dealing In Currencies In The Forex System And Paying Fees For Delaying The Deal - Islamqa.info

Ruling On Dealing In Currencies In The Forex System And Paying Fees For Delaying The Deal - Islamqa.info

106094: Ruling on dealing in currencies in the FOREX system and paying fees for delaying the deal Is it permissible to deal in currencies in the foreign exchange market (forex) over the Internet? What is your opinion regarding the issue of tabiyeet (stipulating interest for not using the deal at the same day)? What is also your opinion about the clearing process which is to delay submitting one to two days after the contract ends. It is permissible to deal in currencies if the deal is donehand to hand and the transaction is free of conditions that stipulate riba,such as the stipulation of fees for delaying the deal, which is interestthat is charged to the investor if he does not take a decision concerningthe deal on the same day. With regard to hand to hand exchange, this has been discussedin the answer to question no. 72210 . With regard to the fees for delaying the deal and trading inmargins, a statement has been issued by the Islamic Fiqh Council concerningthis, which says the following: Praise be to Allaah alone and blessings and peace be upon theone after whom there is no Prophet, our master and Prophet Muhammad, andupon his family and companions. To proceed: The Islamic Fiqh Council of the Muslim World League, in itseighteenth session that was held in Makkah al-Mukarramah from 10 to14/3/1427 AH (8 to 12 April 2006 CE), has examined the issue of trading inmargins, which means that the customer pays a small amount of the value ofwhat he wants to buy, which is called a margin, and the agent (the bank orotherwise) pays the rest as a loan, provided that the purchase contractremains in the name of the agent as a pledge for the money that was loaned. After listening to the research that has been submitted andthe detailed discussion on this topic, the opinion of the coun Continue reading >>

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