The legal (shar`i) status of virtual currency (cryptocurrency) and the ruling of their trade
Fifteenth Annual Fiqhī Seminar Shar`ī Council of India, Bareilly Sharīf Date: 18th & 19th of Rajab al-Murajjab 1439 H [6th & 7th of April 2018] (Sessi...
Fifteenth Annual Fiqhī Seminar
Shar`ī Council of India, Bareilly Sharīf
Date: 18th & 19th of Rajab al-Murajjab 1439 H [6th & 7th of April 2018] (Session One and Two)
Location: `Allāmah Ḥasan Riḍā Conference Hall, Centre of Islamic Studies, JamiaturRaza, Bareilly Sharīf
Presided by: Tāj al-Sharī`ah Muftī Akhtar Riḍā Khān
Question #1: Are Bitcoin, OneCoin, and the other virtual currencies like them assets or not? Can the legal (shar`ī) term; currency, be applied to them or not?
The Answer: After discussion and research done in the light of the information that has been attained regarding virtual currencies, this position was established by consensus that a virtual currency is not a material, and it does not have any external existence. Therefore, legally (shar`an) it is not an asset since it is necessary for an asset to be tangible.
It is in Radd al-Muḥtār:
والمراد بالمال ما يميل اليه الطبع ويمكن ادخاره لوقت الحاجة
And the definition of asset is what the human nature is attracted to and its collecting is possible for the time of need
[Volume 7, Page 10]
المال عين يمكن احرازها وامساكها
The asset is tangible; its acquiring and possession is possible.
[Volume 6, Page 393]
Since that currency is not an asset, then it is not currency in legal terminology either and Allāh Ta`ā-lā knows best.
Question #2: Since it does not externally (physically) exist, its possession is physically impossible, and it is not possible to transfer either, then what is the ruling of its trade?
The Answer: For any transaction, it is necessary for the article of trade to be an asset. It is in al-Hidāyah and al-Baḥr al-Rāiq:
البيع مبادلة المال بالمال بالتراضي
The transaction is the exchange of an asset for an asset with mutual consent.
[Volume 5, Page 256]
Since the mentioned currency is not asset, its trade is also impermissible and Allāh Ta`ā-lā knows best.
Question #3: If any individual buys Bitcoins, OneCoins, or any other cryptocurrency online with euros or dollars and that virtual currency is saved in his online account in such a way that whenever he wants, he can dispose of it, can this be legally considered as possession (qabḍah) or not?
The Answer: By consensus, the position was agreed upon that the virtual currency has no existence in the sense of materialism. Thus, nothing from actual possession (qabḍah ḥaqīqī) or ruled possession (qabḍah ḥukmī) will be achieved, since possession is achieved on those things that are in the category of tangibility. It is in Aḥkām al-Qur’ān by al-`Allām Abū Bakr al-Jaṣṣāṣ:
الدين هو حق لايصح فيه قبض وانما يتأتى القبض في الاعيان
The debt is a claim upon which possession is not valid. Possession is only achieved in the tangibles.
[Volume 2, Page 161]
And Allāh Ta`ā-lā knows best.
Question #4: What is the legal status of the first method that is mentioned on attaining benefits in (trading with) OneCoin?
The Answer: By consensus, the position was agreed upon that the first method of attaining benefit with OneCoin which is written with detail in the questionnaire is impermissible and a sin. If any Muslim has invested in this, then he should quickly, through every possible effort, take his investment back and Allāh Ta`ā-lā knows best.
Question #5: There are three circumstances where one can profit from OneCoin using the second method; what is the legal ruling for each and every circumstance?
The Answer: All three of the circumstances mentioned in the questionnaire where one can profit from OneCoin using the second method fall under the ruling of gambling and are impermissible and Allāh Ta`ā-lā knows best.
Question #6: What is the legal status of doubling the coins of all the members on a set date? Is it considered gambling, profit, or what?
The Answer: This falls under the ruling of gambling and Allāh Ta`ā-lā knows best.
Question #7: An important question is that if one becomes a member of this company merely to attain coins and does not offer membership to others through networking, would this be legally correct?
The Answer: Doing so is impermissible and incorrect, and Allāh Ta`ā-lā knows best.
Question #8: Can investing in such companies be proven permissible in any way or not? In places such as Europe, America, etc. the public and many scholars are rushing to invest in this. Therefore, can this be deemed permissible by considering it as custom (‘urf) and common practice (ta`āmul)?
The Answer: Neither custom nor common practice has been achieved in this situation. Therefore, there is no way this can be deemed permissible based on `urf and Ta`āmul and Allāh Ta`ā-lā knows best.
Translated by Sayyid Mawlana Asad al-Qadiri & Mawlana Salman Nuri (Maryland, USA)