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According to Abu Bakar, Islamic law is a collection of legal concepts derived from many sources of the tradition known as the Shari’a. The Koran, tradition, and the Prophet Muhammad’s revelations are among these sources. The Qur’an, tradition, and the Prophet Muhammad’s revelations are among these sources.
According to Abu Bakar, the Shari’a is a collection of legal notions collected from a variety of sources of tradition. These sources include the Koran, tradition, and the Prophet Muhammad’s revelations. These sources include the Qur’an, tradition, and the Prophet Muhammad’s revelations.
Bitcoin: Is it Haram or Halal?
Several muftis in the Islamic community have spoken out against cryptocurrencies, declaring them to be haram. Shawki Allam, Egypt’s grand mufti; Haitham al-Haddad, the United Kingdom’s mufti; and the Fatwa Center of Palestine were among them.
In addition, the Turkish government’s religious authority issued a fatwa declaring all crypto assets illegal. The counterarguments can be divided into the following categories:
- Bitcoin is not recognized as a legal tender.
- There is no acknowledged issuer of Bitcoin.
- Bitcoin is not backed by a central body or a government.
- The Bitcoin is a volatile and speculative currency.
- Bitcoin may be used for money laundering and other illicit operations with ease.
Following that, Abu Bakar used a series of arguments to show that these assumptions are false and that Bitcoin and other crypto-assets can be considered halal in certain circumstances.
Anything that gets monetary status through social acceptability or government compulsion is referred to as “money by custom.” Furthermore, Blockchain is a technology that outperforms Bitcoin; the decentralized ledger technology would have to be regarded as a boon in terms of series transparency standards specifically since it has the power to boost trust in transfers and exchanges.
Even above conventional money, Bitcoin shares the core concepts of seriad regarding money.
National Laws Supersede the Permissibility of Sera
While Bitcoin does not, in essence, contradict sera’s mandate for what can be deemed money, it cannot be regarded as legal in nations where the government does not.
To determine if the legal status of Bitcoin and other crypto-assets is permissible, each regulatory environment must be classified. There are three conceivable outcomes:
- Jurisdictions that prohibit the use of cryptocurrencies;
- Jurisdictions that allow the use of cryptocurrencies.
- The Jurisdictions whose regulators did not adopt a clear stance but stressed the importance of being cautious with this technology and the hazards it entails.
- Jurisdictions in which regulators have recognized it as an alternative currency and have passed legislation allowing the public to use it.
In the last two circumstances, using Bitcoin is legal. On this matter, national laws go beyond sharia’s permissibility.
However, because one of the regulation’s main goals is to preserve wealth, crypto-assets must be handled with caution and a thorough understanding of the risks involved.
The goal of cryptocurrencies is to operate as an alternative to traditional payment methods.
Because Bitcoin and other crypto assets are still extremely volatile, they are not recommended as traditional investments. ICOs should be given special consideration. Many frauds are advertised as halal when they are pyramid or pozi schemes. Therefore Islamic communities must be extremely cautious.
Such a debate is far from inconsequential, as its outcomes could influence the attitudes of a quarter of the world’s population toward this technology.
It’s worth emphasizing that whether a fatwa determines if something is bitcoin halal or haram has nothing to do with whether a state restricts its use or that, as some states in Muslim-majority countries do not accept the Shariah as a source of law. In Syria, sharia is equated with state law, whereas in Saudi Arabia, sharia is equated with civil law.
I am Lavinia by name, and a financial expert with a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.