General Islamic Discussions => General Discussion => Topic started by: marikar on September 15, 2017, 07:03:14 AM

Title: fatwa on cryptocurrencies
Post by: marikar on September 15, 2017, 07:03:14 AM
assalaamu alaikum W R W B

could someone please direct me to a reliable fatwa regarding cryptocurrencies

Title: Re: fatwa on cryptocurrencies
Post by: samah on September 18, 2017, 07:54:21 PM
وعليكم السلام ورحمة الله وبركاته

Here's a research paper on the topic by Muftī Faraz Adam al-Mahmudi.
Title: Re: fatwa on cryptocurrencies
Post by: aballi on October 17, 2017, 10:00:40 PM
There is a Fatwa that is posted in the below link, but there is discussion on the topic which can be understood from Mufti Faraz's work...And Allah is all knowing
Title: Re: fatwa on cryptocurrencies
Post by: abuhajira on November 03, 2017, 10:36:41 PM
Just for the record, I hold my judgement on the issue of investing in bitcoin. I am constantly making review of the issue, but there are technicalities which Mufti Faraz has not addressed, and I do not wish to formulate the opinion without having full understanding of it.

So my stance is to abstain until issue is more clear.
Title: Re: fatwa on cryptocurrencies
Post by: abuhajira on November 04, 2017, 12:52:04 PM
My current understanding is as follows (but please not that this is not final conclusion, and do not take it as a fatwa)

In short, I see there are two seperate transactions going on which make the system work.

One is the individual's translation which has to be verified via puzzle which has been randomly generated for the block chain. Merely because the puzzle is randomly generated does not make the transaction void. It could be random, or non-random. It is an external factor. Hence if A sends bitcoin to B, then in itself this transaction is not pending on a chance, rather a jahalat of *when* the randomly generated puzzle will be solved. This jahalat is not mufdi ilal manazi'a. Hence the transaction is sharia compliant.

On the flip side, the generation of bitcoin is dependent on the solving of the same puzzle which was randomly generated.

This will have 2 scenarios.

a. Either the miners have put money to get the bitcoin winnings, (Eg Genesis Mining), then this is gamble as the money they put in is bet for a possible winning in bitcoins.

b. The miner buys his server or uses his computer to mine (i.e solve the puzzle) for winning the bitcoin. In this case he has not placed any maal as bet to get the winning, so this is not gamble and will be shariah compliant.

Hence "b" will be permissible and "a" will not be permissible.