Concept of Money In Islam

& Cryptocurrency Issues

14 Jamadil Awal 1439 31 January 2018 Ustaz Abd Aziz Mohd Nor Ustaz Lariba
 Today’s Topics
2

¨ History of Money
¨ Functions of Money
¨ Concept of Money in Islam
¨ Issues of Cryptocurrency
¨ Shariah Opinions on Cryptocurrency
 History of Money
3

¨ Before the advent of fiat money…

Barter Trade Bimetallism Monometallism

¨ The problems with barter trade:

¤ Sometimes we need what we don’t
have and others have what they or
others don’t need
¤ No measurement standard for
exchange
¤ For example, how to exchange a camel
and salt?

Al-Ghazali, Abu Hamid, Ihya Ulum al-Din, Beirut, Dar al- Nadwah al-Jadidah, undated, vol.4, pp91
History of Money – Problems With Barter

¨ Imam Ghazali summarized the problems with barter trade:

¤ There’s no standard measurement for goods and services
¤ Goods may not be divided
¤ Problems when two people who want to switch things need
the same thing (double coincidence).
¨ Barter trade causes extreme
inefficiencies and prevent
specializations
¨ Al-Ghazali considered the invention of
money as one of the greatest blessings
of Allah SWT that obligates people to
owe enormous thanks to Him
History of Money - Bimetallism
¨ Due to severe limitations of barter system, people started
looking for a better medium which is fair and effective, also
not easily counterfeit.
¨ Enter the era of bimetallism…
¨ Since 211 BC, metallic money was
issued by the Romans
¨ The Roman issued gold as currency,
known as denarius in Latin à origin
of the word dinar
¨ The Persian issued silver as currency,
known as drachma à origin of the
word dirham
¨ Both were issued and managed by
governments of the day
 History of Money – Paper Money

¨ During the Song Dynasty (960-1276) the rapidly growing business in

the Tchetchuan region also resulted in the lack of copper money.
¨ Some traders issue individual drafts that are protected by financial
reserves which originally consist of coins and salts, then gold and
silver
¨ These notes are considered to be the first to
be distributed as legal tender.
¨ In 1024, the Authorities awarded them a
monopoly of publication and under the Mongol
rule, during the Yuan Dynasty (1279-1367), the
bill was the sole legal tender.
¨ During the Ming Dynasty (1368-1644) notes
were issued to the Ministry of Finance.
 History of Money – Bretton Woods

¨ Metal-based paper money (especially gold) has been in use since

1880.
¨ The main issue of gold-backed cash is the non-standard exchange
rate between countries
¨ After World War II, the Bretton Woods System
was created to structure trade and financial
regulations between the United States,
Canada, Western Europe, Australia and
Japan in 1944.
¨ The key feature of the Bretton Woods system
is the obligation of each country to adopt a
monetary policy that maintains its external
exchange rate of 1% by binding its currency to
gold and setting up the IMF for regulation
 History of Money – Bretton Woods

¨ The US dollar became the base since at the end of World War II, the
United States has about two-thirds of the world's monetary gold.
¨ Under Brenton Woods, the national currency is legally determined
as a fixed weight of gold, and monetary authorities have an
obligation to convert domestic currencies when required in gold at a
rate that is legally established, starting with a gold price of
USD35/oz
¨ It binds the monetary authorities to
discipline and it is not possible for them to
grow excessive amounts of money.
¨ By the late 1950s, the growth of world
monetary gold reserves was insufficient to
finance growth in world production and
trade
History of Money – Fiat Money

¨ This led to the end of the Bretton Wood system in 1971 and
began a new era of money standard with no relation to gold.
¨ The exchange rate is now floating with no official par value.
¨ Since the establishment of full fiat money, the world witnessed
two unwanted phenomena, which may not necessarily be due
to it.
¨ This is a high inflation rate and
excessive instability in
exchange rates.
 History of Money – Full Cycle
10

Commodity Money

Barter Trade Bimetallism Monometallism

Pure Paper Bretton Woods

Money

Representative
Money
 Is Dinar a Shariah Currency?
11

¨ Some people say to solve the riba, inflation and currency

crisis, we should return to the gold and silver currencies
(dinar and dirham)
¨ They claim that the dinar and dirham currencies are shariah
or sunnah because the Prophet uses it and the fiat money is
not syariah currency because it has no intrinsic value
¨ Some claim that the paper currency
itself is riba!
¨ The question is whether the currency
must be of a kind of precious metal to
solve the currency turmoil?

Islamic Gold Dinar – Myth & Reality, Murat Cizaka

 Which Will Be The Prophet’s Choice?
12

¨ Paper money has not been created in the time of the

Prophet, so he cannot use the currency if he wants
¨ But, if the Prophet had a choice, which one would be
chosen?

or ?

¨ Of course, the Prophet will think by using the Quran and will
base his decision by the inspiration from the word of Allah
 Which Will Be The Prophet’s Choice?
13

¨ The Qur'an does not determine what currency should be

made of, but provides a strong indication of the prohibition of
riba as a basis for making decisions ...

“And Allah permits the sale and prohibits riba” (Al-

Baqarah: 275)

¨ Obviously, based on these instructions, the Prophet will try

to choose the type of currency that allows zero riba
 Metallic Money – Two Value In One
14

¨ Each mint has two different

values, the face value and internal
value (intrinsic)
¨ Face value is what is written on it
and determined by the power of
Nilai muka = 5 Nilai dalaman =
government
dinar 0.5 dinar
¨ Internal value is the cost of producing coins and, more importantly,
with the value of metal contained therein
¨ The internal value of the mint is determined by the global
commodity market, not the power of the government
¨ Under normal circumstances, the face value must be greater than
or equal to the intrinsic value
¨ That is, with the metallic money, the power of determining the value
of the currency is not entirely in the hands of the government
 Inflation and Metallic Money
15

¨ When the money supply is not fixed and inflated, inflation will
occur naturally, regardless of what money is made of
¨ The main reason for the metal currencies in the market
increases is gold inflows and outflows are an economic
problem
¨ The other major reasons for increasing money supply are ...

War (main reason) New discovery of gold Debasement

or silver
 Inflation and Metallic Money
16

¨ Likewise, in the days of the Ottoman empire, according to the

study of the palace kitchen bills
¨ The Ottoman empire in Turkey used Sultani gold and silver
akces, also fulus
¨ They released 800 akces from 100 silver dirhams while the
earlier standards had 450 akces per 100 dirhams
¨ The price of goods was up 80 to
100% during the use of the metal
currencies
¨ In conclusion, metallic money does
not provide protection against
inflation, but it depends on the
effective management of economy
 Bad Money Drives Away Good Money
17

Case #1 – Intrinsic value lower than face value

• Face value RM1,000
• Price of gold RM1,000 per oz
• Gold content 90%
• Gold intrinsic value RM900
• Production cost RM50
• Intrinsic value = RM900 + RM50 =RM950
• Face value greater than intrinsic value

• NO PROBLEM
 Bad Money Drives Away Good Money
18

Case #2 – Intrinsic value higher than face value

• Face value RM1,000
• Price of gold increases to RM1,200 per oz
• Gold content 90%
• Gold intrinsic value RM1,080
• Production cost RM50
• Intrinsic value = RM1,080 + RM50 =RM1,130
• Intrinsic value greater than face value
• HUGE PROBLEM! Citizen will melt money and sell gold instead
• Because its more profitable to sell gold then to use the money
 Harm Is Triggered
19

¨ When the intrinsic value is higher than the face value, the
government will reduce the gold content in money
¨ The production of a lot of new money that content less gold
will cause inflation, because old money will be lost or melted
¨ Al-Ghazali has predicted this, in
modern days it is call Gresham’s Law
(bad money drives out good)
¨ Demand for money rises sharply as
money loses from the market causing
the price of money (riba) to rise as
gold prices rise
¨ This is a natural human nature but
Islam prohibits hoarding of money
 Is Paper Money Shariah Compliant?
20

¨ There is no specific nas in the Qur'an or Sunnah that makes it

obligatory for Muslims to continue to use bimetallic standards
during the time of the Prophet (SAW) and monometallic in
later times
¨ Imam Ahmad ibn Hanbal (241/855) observed that there was
no harm in accepting any kind of currency generally accepted
by the people (al-Rashid (1980), vol. 1, cited by al-Misri (1990), p. 10.)
¨ Ibn Hazm (456/1064) also did not
find any reason for Muslims to limit
their currency to gold or silver (Ibn
Hazm (d. 456/1064), al Muhalla ,vol. 8, p.
477.)

Monetary Management in an Islamic Economy, Chapra

 Is Paper Money Shariah Compliant?
21

¨ Ibn Taymiyyah (505/1328) argued that dirhams and dinars

were not required for their own sake but because of their
ability to function as an exchange medium.(Ibn Taymiyyah (d.
505/1328), Fatawa, (1963), vol. 19, p. 251)
¨ Therefore, there is no special sharia law for what money
should be made of and their acceptance depends on custom
(urf) and usage.
¨ They argue that riba will occur in all
kinds of goods that are made as
currency based on al-qiyas method
if wrongly exchanged.
¨ This is because all the goods made
in the currency have the same
nature ('illah) as gold and silver.
 Fatwa On The Use of Fiat Money
22

¨ The World Fiqh Academy (Jeddah) under the OIC in 1986 issued a
fatwa using fiat money as a currency (thamaniyyah) is permissible,
as follows:
¨ Regarding the law of fiat money: It is the currency by law
because of its inherent value, and therefore all the laws of
gold and silver are fallen on fiat money such as the law
relating to riba, the obligation of zakat, the sale and salam
contracts, and all the laws of gold and silver.(qararat wa
tawsiat, Majma Al-Fiqh Al-Islami, hlm 40 )
¨ Provided that we must follow the discipline and
conditions similar to the law of gold and silver
¨ Because it still serves as a medium of
exchange and can still serve the money
function
 Money From Animal Skin
23

¨ Khalifah 'Umar RA has a desire to make camels skin as money

¨ However, the problem that may have confused him is how to
control the issue.
¨ When he was advised by experts that the
government was unable to control the
issue, not only because of excessive
money creation but also the possibility of
losing camels through excessive
slaughter, he abandoned the idea.
¨ This shows' Umar RA, a close friend of
the Prophet SAW, saw that money can be
made of anything and whatever money is
made of, the law of riba is still applicable
Al-Biladhuri (d. 279/892), (1959), p. 456, and Qila’ji (1981), p. 643.
 Zero Interest Rate With Paper Money
24

Bank of Japan set the As of June 6, 2014 the

interest rate for deposits on European Central Bank (ECB)
January 29, 2016 is -0.1% set a deposit rate of
between 0 to -0.1%

¨ These countries have proven that it can achieve zero riba in

an economy that uses paper money since it is fully controlled
by the government
 Money Must Be Issued By Government
25

¨ Scholars almost unanimously emphasize that the currency

must be issued by the government and must have a stable
value, to enable it to perform its function as a measure of
value, exchange medium, and value keeper.
¨ According to Imam Ahmad ibn
Hanbal and Imam Nawawi,
currencies should be issued only
by the government.
¨ Khalifah 'Umar ibn Abdul Aziz (d.
101/720) imprisons someone who
issued coins without state
permission
(Lihat Al-Mawsu'ah al-Fiqhiyyah (Kuwait), jilid 20, ms 249-50. Misri (1990), ms 94-95.)
 Functions of Money
26

¨ The definition of money is: "Any object generally accepted as

payment for goods and services and repayment of debt in a
country or in the socio-economic context"
¨ Money is a medium of exchange which is an intermediary
for the sale and purchase of goods and services
¨ The store of value (money of
which can be stored and reused
as a medium of exchange)
¨ Unit of account to determine
the value of something
 Money As The Medium of Exchange
27

¨ Imam al-Ghazali said that money is not required for the sake of the
money itself.
¨ "If one trade dinar and dirham to get the dinar and dirham, he has
made the dinar and dirham as the objective. This is in contrast to
the function of the dinar and dirham. Money was not created to
make money. Doing so is an offense. Dinar and Dirham is a tool to
get other items. They are not meant for themselves. "(Al-Ghazali, Ihya’
‘Ulum al-Din, Dar al-Nadwah, n.d., Beirut, Vol. 4)

¨ Imam Ibn Qayyim in Al-Turuq al-Hukmiyah slammed the act of

making currency as a commodity item when he said: "It must be
forbidden for anyone who makes currency as a merchandise
because it will cause great damage and not be ignored except by
Allah swt, infiltrate into society, even what is COMPULSORY is that
money must be the currency that the person conducts through it
(as the medium of exchange) and not the currency itself. "
 Examples Money Not Used As Exchange
Medium
28

¨ Riba-based loan
The issues involved:
Loan RM1,000
¨ Money is not an exchange
medium
Pay RM1,200
¨ Money became subject
¨ The exchange is not the same

¨ Online forex (foreign

exchange)
¤ Use leverage for trading
¤ No taqabbud bil hal that is
no immediate exchange
 Monetary Policy
29

¤ Monetary policy is the macroeconomic basis set by

the central bank
¤ It involves the management of money supply and
interest rates and is the demand side of the country's
economy to achieve macroeconomic objectives such
as inflation, consumption, growth and liquidity.
¤ Example: control of money
supply, OPR (overnight policy
rate)
¤ Issuing of bonds
Money Categories

Digital Money Pure Digital Bitcoin/ETH etc.

Money
Money

Electronic Money

Representing or
Interchangeable…

Non-Digital/ USD/MYR etc.

Fiat Money
 What is Bitcoin?
31

¨ Bitcoin is a cryptocurrency created in 2009 by an

unidentified person or group using the alias Satoshi
Nakamoto.
¨ There are over 1,000
types of crypto money
but bitcoin is the most
widely accepted (> 30%),
and is followed by
ethereum
¨ It has 21 million bitcoin
units
 Unlocking Bitcoin's Origin
32

¨ Bitcoin's first reference is Bitcoin's white paper written by

Bitcoin creator, Satoshi Nakamoto, in 2008.
¨ In it, he said, "I've been working for a completely new peer-to-
peer system, with no trusted third parties."
¨ This explains everything that
Bitcoin means, and this is the
first thing to make people
excited about it, the main
terms are "cash," "peer-to-
peer," and "no trusted third-
party."
 Unlocking Bitcoin's Origin
33

¨ Bitcoin should be a way of paying for goods and services

online - in Nakamoto's words, Bitcoin will replace the existing
system for "trading on the internet."
¨ In the early days of Bitcoin, the Bitcoin pioneers tried to use it
for everything, including salaries, pizza, and Bitcoin swag.
¨ This is the spirit of Nakamoto's
proposal, but rippling effects
are not there because not
enough traders are accepting
Bitcoin, or enough customers
are holding it.
 How To Get Bitcoin?
34

#1: Buy From Bitcoin Exchange

¨ For example, Luno.com is a bitcoin

exchange in Malaysia

#2: Transfer
¨ Can send bitcoins to others using a

mobile app or computer.

#3: Mining
¨ The transaction process is confirmed and

added to the public ledger (blockchain),

as well as the new bitcoin method is
created.
 How Does Bitcoin Work?
35
 How Do Bitcoin Work?
36
 Anonymous Transactions
37

¨ Although every bitcoin transaction is recorded in a public

ledger or blockchain, only the ID of the owner's wallet is
listed.
¨ Can sell anything without detecting it back to them or
their name
¨ That's why bitcoin is the
preferred currency for
buying drugs online,
including money laundering,
 Bitcoin Issues: Bitcoin Very Unstable
38

¨ Bitcoin value is very unstable (high volatility) without any

fundamentals…

The ups and downs are

not on economic factor,
but simply supply and
demand that is solely
speculation (gambling?)
…
 High Exchange Rate Volatility Harmful
39

¨ Continued high exchange rate volatility makes it difficult for

traders and investors to make precise forecasts for the future
and contribute to the inaccurate allocation of resources
internationally and internationally.
¨ Continuous volatility = harm, and causing harm is prohibited
¨ For example to buy a house ...
¤ You bought a 100 bitcoin home in early
2017 (1 btc = USD1,000) or USD100,000
or RM400,000, the agreement was in the
bitcoin currency
¤ On January 17, 2018, the price of bitcoin
is $ 9,412, meaning the current home
price is 100 bitcoin x USD9,412 =
USD941,200 or RM3,764,800 ..
 Bitcoin Has No Central Control
40

q After almost nine years of Bitcoin's existence, the closest thing

to Bitcoin's Nakamoto-powered payment type imaginable is on
the black-market website: websites like Valhalla or Silk Road.
q Bitcoin is the main currency in the dark web - but speculators
are driving towards bubbles / bubbles, making it difficult to use
Bitcoin for real transactions.
q Bitcoin has no regulator, and no
savings protection like PIDM, there
is no protection for bitcoin savings,
and this invites harm due to
excessive high risk
 No Central Control = Very Risky
41
 Is Cryptocurrency Investments Shariah
Compliant?
42

q From our study, all investments

that offer profit through bitcoin, or
whatever cryptocurrency in the
world like ethtrade, bitclub, Kazuki
Coin or DinarDirham are all scams
q All cryptocurrency investment
has the elements of gharar,
taghrir, ponzi, riba and all kinds
of haram on this world
accumulated on the investment
scheme.
 Fatwa That Forbid Bitcoin
43

¨ Turkey - Bitcoin's transaction is not currently

syariah-compliant because its value is
exposed to speculation, easy to use for illegal
activities such as money laundering and not
under audit and government / state regulation.

¨ Saudi Arabia – Imam Assim al-Hakeem

reportedly said the use of Bitcoin's digital
currency was prohibited due to its unclear
nature and gave anonymity to criminals.
 Fatwa That Forbid Bitcoin
44

¨ Egypt - Egypt's Grand Mufti issued a fatwa

through Dar Al Iftaa trading Bitcoin is shariah
non-compliant
¨ He warned against digital currencies, citing
risky and uncontrollable behavior that could
lead to fraudulent transactions.

¨ He explained Bitcoin could allow tax evasion, piracy, money

laundering, fraud and bribery, and thus prohibited in Islamic law.
¨ Mufti Counselor, Magdy Ashour, added that his use could cause major
damage to the country's economy. "It has no specific rules, which are
considered as a cancellation of contracts in Islam, that's why it is
forbidden," said the counselor.
 Fatwa That Forbid Bitcoin
45

¨ Dr. Ali Mohiuddin Al Qaradaghi, Ph.D. is a Professor

of Islamic financial contracts and heads the Department
of Islamic Jurisprudence in the College of Shariaa and
Islamic Studies at the University of Qatar. Dr. Al
Qaradaghi has founded numerous charitable
organizations and international Islamic jurisprudence
bodies.

¨ He serves as Chairman of the Sharia Board, Managing Executive for Fatwa & Sharia
Supervision Authority at Mazaya Qatar Real Estate Development Q.S.C. and served
as its Vice Chairman of The Shariaa Board. Dr. Al Qaradaghi serves as Member of
Shari’a Supervisory Board at Dar Al Istithmar Limited and Prosperitus Capital
Partners. He serves as Member of DI Shariah Supervisory Committee of Amiri Capital
LLP. He serves as Member of Shariaa Supervisory Committees of Emirates Islamic
Bank, UAE; Dubai Islamic Bank, UAE; Investment House, Bahrain; Investors Bank,
Bahrain and First Investment, Kuwait. Dr. Al Qaradaghi has authored eight books,
with several more in various stages of publication, on topics including Islamic
jurisprudence and Islamic thought. He completed his Ph.D. in Contracts and Financial
Transactions from Al Azhar University in Cairo, Egypt in 1985.
 Fatwa That Forbid Bitcoin
46

¨ Sheikh Dr Ali Al-Qaradaghi - Secretary

General of the World Ulama Association and
international Islamic finance expert
¨ The original principle in Islam is the origin of
the law to something is necessary, especially
if it is a good thing.

¨ In Islamic Shariah, any currency is the interest of the state

government, it must be supervised by the state.
¨ Currencies should have a good medium of exchange, it can store
value and be a measure of value, the main standard in a transaction,
but this property is not owned by today's majority of today's crypto
currencies such as Bitcoin and the like
 Fatwa That Forbid Bitcoin
47

¨ If we assume bitcoin is a currency, it, for now,

still does not qualify for the correct transaction
on the syariah side because the value does
not go up and down as it happens today
¨ Based on the Sadd Dhara'i method in Islam,
something that should be prevented if it leads
to more harm
¨ Speculation activity in bitcoin is very widespread, in the
circumstances as it happens and today's situation, is not allowed
according to Shariah.
¨ Those who use bitcoin or speculate in bitcoin should sell it at market
prices, any profit should be channeled to poor and welfare sectors
¨ Bitcoin does not qualify for transaction that is allowed in terms of
syarak.
 Fatwa That Forbid Bitcoin
48

q Sheikh Dr. Abdul Sattar Abdul Karim Mohammed Abu Ghuddah

(Syirian-Bahrain)
q Educated at University of Damascus (Syria), he obtained a Bachelor in
Shariah (1964) and Bachelor of Law (1965) He holds double Masters in
Shariah (1964) and Ulum Hadith (1967) and a PhD (1975) in Shariah
(Comparative Mazhab) from al-Azhar University. He started his career as a
Lecturer at Imam Al Da'awa Institute (Riyadh), Religious Institute (Kuwait),
Sharia College of the Law Faculty in Kuwait University. His current position
as a Shariah Consultant, Dallah Al-Barakah Banking Group and Director of
Department of Financial Instruments at AI-Barakah Investment Co-Saudi
Arabia.
q He is a committee member for various organisations such as Islamic Law Encyclopedia (Kuwait
Awqaf Ministry: 1982-1990), AAOIFI, Dar Ististhmar, Islamic Fiqh Academy Jeddah, Dow Jones
Islamic, Qatar Islamic Bank, Jordan Islamic Bank, Jordan Islamic Insurance, Islamic Bank of
Asia, Arab Finance House (AFH), European Finance House (EFH), Syrian International Islamic
Bank.Union Bank of Switzerland (UBS)-Switzerland, Saudi American Bank-Saudi Arabia,
Guidance Financial Group-USA, First Islamic Investment Bank-Bahrain, Standard Chartered
Group Saadiq Islamic Banking, Calyon, Zayan Finance-USA, European Islamic Investment Bank
(EIIB), Noor Islamic Bank-Dubai, Unicorn Investment Bank, He has written various books and
articles on Fiqh Muamalat.
 Fatwa That Forbid Bitcoin
49

¨ Sheikh Dr Abd Sattar Abu Ghuddah

¨ From Islamic perspective, electronic
currency trading is still prohibited for
two observations:
¤ The prohibition by 'wali al-amr'
(represented by central banks) seeks to
attract benefits that are not contrary to
syarak. Prohibition of transacting with the
electronic currency by the regulatory
authority in most countries whether it is
expressly or not is a must (to be complied
with); and
 Fatwa That Forbid Bitcoin
50

¨ Harmful and harmful elements and dangers

leading to destruction of property through the
ten kinds of risks that have been presented in
detail which are not the types of risks that are
given flexibility by the law as "the profit is
accompanied by the risks" and the methods
"the income is the benefit of the liability
taken".
¨ On the other hand it is the risks of exposing
themselves and property to the destruction
where the property is part of Maqasid al-
Shari'ah.
 Fatwa That Forbid Bitcoin
51

¨ Dr Zaharuddin Abdul Rahman -

Bitcoin can be regarded as money
even though it is not 'legal tender'
¨ Permissible to have Bitcoin to save
value and fight inflation.

¨ But it is COMPULSORY to be aware of the risk of existing value may

be 'burst' like a bubble and severe losses are also risk.
¨ Permissible to use Bitcoin to buy stuff because there are shops that
accepts bitcoin as payment.
¨ Bitcoin is known as a speculative asset that has not stabilized its true
value and requires time to be more stable, therefore, it is highly risky.
¨ Should NOT trade and speculate on the fluctuating Bitcoin
value
 Countries That Forbids Bitcoin
52

¨ Indonesia & Algeria -

Banned bitcoin starting
2018

¨ Bangladesh - Banned
bitcoin starting 2014
¨ Morocco - Banned
bitcoin starting 2014

¨ China & Russia –

Restrict bitcoin activities
 Is Blockchain Fool Proof?
53

¨ Technology is created by humans, so there will be

another human being (or its own creator) who is likely
or smart enough to "hack" or modify the blockchain
data
¨ With which fool in mind was the term "fool-proof
system" first coined?
¨ IN COMPUTING, there are two mottos about foolproof
systems: 1. The difficulty in making a system foolproof
is that fools are so clever. 
2. If you make a system
foolproof, only fools will want to use it.
 Public Systems Should Be Regulated
54

¨ Should be periodically audited:

¤ Miners
¤ Bitcoin exchange
¨ There should an independent authorized body that
regulates to ensure trust and accountability
¨ There are independent standards, for example, such
as PCI-DSS for payment
 Summary & Advice
55

¨ Blockchain is the technology of the future and it must be

under strict regulatory and auditing requirements.
¨ Ask ourselves; are we involved with cryptocurrency because it
makes it easy to buy and sell (advanced technology) or we
speculate to profit from the current price difference?
¨ If as a buying and selling medium, there is no problem but it is
almost impossible not to fall into speculative price fluctuations
because of the potentially lucrative returns.
¨ Keep away from being involved with any cryptocurrency for
now because there are prohibited gharar, maisir and due to
saad dhara’i
¨ Can be involved in the future when it is regulated and has
general protection as well as recognized by syarak.
56
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