As-salamu alaykum! May Allah bless you, my brothers and sisters! It is said that the use of crypto in smuggling makes it say that dealing with these currencies is prohibited. My brothers and sisters, it is known that decentralized cryptocurrencies, such as Bitcoin, are completely encrypted, and this, of course, means that the parties dealing with them are unknown.
Thus, it is impossible to control the transactions that occur with it. These currencies have faced serious charges, such as being used to finance prohibited activities, drug trafficking, money laundering, so some of the brothers who are against these currencies felt that this was enough to say that they were banned. Also, one of the respected scientists came to the conclusion that for these and similar reasons, decentralized cryptocurrencies, such as bitcoin, are prohibited as funds.
Of course, to answer this objection, my brothers, first let’s look at what is illegal, which is paid with bitcoin and cryptocurrency. We should warn you that not everything illegal is forbidden from the point of view of Shariah. Some of the illegal things are forbidden from the point of view of Shariah. For example, organ trafficking, drugs, and so on. Some of them are acceptable, for example, I want to transfer my money abroad. According to Shariah, this does not prevent me from transferring money. The state solves its problems on its own, and prohibits transfers of a couple thousand dollars to me.
Some of these prohibited transfers may be mandatory, for example, the transfer of money to charitable organizations, to the poor people in all corners of the world, and you know today that there is a restriction on the work of associations, etc. Some countries prohibit it, but it is mandatory under Shariah law. Often States prohibit something for political reasons. Those who impose these prohibitions do not even look at whether they are prohibited or permissible when they decide to ban them.
The advantage of this warning is that it narrows down the range of illegal things, the means for which, allegedly, are cryptocurrencies, because not everything that is illegal is prohibited. Therefore, the circle will narrow and be limited when we distinguish between what is illegal according to Shariah and what is not prohibited from it.
If we define and indicate which of the illegal uses is prohibited under Shariah law, such as drug trafficking, for example, and organs, here we need to ask a question:
How were these forbidden goals achieved before the advent of cryptocurrency? Wasn’t it a paper currency like the dollar?
If they say that these currencies – bitcoins and cryptocurrencies, make it easier for people to deal with these prohibitions, then it does not follow that it is necessary to fight with cryptocurrency. However, it is necessary to develop means to combat these forbidden things and those who deal with them.
By the same logic, the first currency to fight is the US dollar. The dollar is the main currency for such activities, before and after bitcoin, the US dollar remains the main currency for these activities. Common sense requires us not to fight against the dollar, but to fight against prohibitions.
Common sense should also require us to fight not with cryptocurrencies, but with prohibitions. And I think this is one of the simplest objections they have, which is not equivalent to saying that currencies are banned because of this.
Islamic Coin is a native currency of Haqq, a community-run network, dedicated to empowering an ethics-first Shariah-compliant financial ecosystem. Islamic Coin has a finite total supply and 10% of each issuance is automatically dedicated for philanthropic purposes. Project’s mission is to empower the world’s Muslim community with a financial instrument for the Digital Age, that enables seamless transactions and interaction, while supporting innovation and philanthropy.
It is forbidden to use this coin in any inappropriate activity! The Islamic Coin Shariah Board and Executive board consist of the world’s most renowned Islamic Scholars and financists! This is the only Right crypto currency for Muslim world and it more honest and clear than Bitcoin is!