Foreign exchange trading has been one of the fastest-growing activities among private investors in the past 15 years. According to research by Citi in 2014, 4 million people are now trading currencies online, and retail traders account for around 20 per cent of the average daily turnover of the global spot forex market. An estimated … More Research Paper: Retail Forex Trading: Views from the front lines of Islamic Finance
Initial Coin Offerings are an innovative way to raise funds by issuing tokens through blockchain technology. The issued tokens can vary widely in their design and function. Some of the common types of tokens include: work tokens, utility tokens, asset-backed tokens, revenue tokens, equity tokens, buy-back tokens. In theory, a token holder can gain a … More Research Paper: Decoding Compliance of Initial Coin Offerings
Cryptocurrencies have become a buzzword across the world. The potential financial returns from cryptocurrencies have attracted Muslim investors, whilst the opportunity to raise funds by issuing tokens has attracted Muslim entrepreneurs and developers. The key question which is continuously being asked is the Shariah compliance of cryptocurrencies and token sales. This research analyses the nature … More Research Paper: The Shariah Factor in Cryptocurrencies and Tokens
In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. The Answer: Retail conventional Forex trading, where individuals are merely speculating on currency pairs, is non-Shariah Compliant. Brokers which offer Islamic FX accounts advertise their product with ‘no rollover/swap fees’. What is more important to determine is whether or not … More Is Retail Forex Trading Shariah Compliant?
At the National Zakat Foundation, in collaboration with scholars, financial analysts, accountants and others, we spent almost 5 months analysing the FTSE 100 to determine proxy for net Zakatable assets in companies, Summary recommendations National Zakat Foundation’s (NZF) recommendation to Muslim shareholders is as follows: Ideally, a complete calculation and review of the balance sheet … More Zakat on share investments: determining a proxy for calculation
Summary Any cryptocurrency or token purchased to resell will always be Zakatable. Zakat is due on the market value on one’s Zakat anniversary. The cryptocurrency value should be converted into one’s local currency at the time of calculation. If a cryptocurrency is not purchased to resell, a coin currency such as Bitcoin, Litecoin, Ripple etc … More Research paper: Zakat on Cryptocurrencies
This short treatise analyses the concept of ownership in Shariah and considers the concept of a trust under Shariah. Ownership is described as a relationship between a legal person (human or non-human), the corporeal entity of the property and its benefits. The paper expounds on the different types of ownership recognised in Islamic law with examples … More A Shariah Analysis of Ownership and the Concept of Trusts
Question: Is there a Zakat levy on one’s Bitcoin holdings? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. The Answer: According to our understanding, Bitcoins are Zakatable. One may pay 2.5% of his Bitcoin holdings as Zakat or alternatively, pay 2.5% Zakat in one’s domestic currency equivalent to … More Is there a Zakat levy on one’s Bitcoin holdings?
This is an overview and my personal conclusion to an ongoing research in respect to Bitcoin. References and detailed analysis can be viewed in my previous papers. After researching the issue of Bitcoin initially and releasing papers on the topic, I have received feedback from several colleagues from the Islamic finance industry, fellow Shariah advisors … More Shariah Interpretations of Bitcoin
Question: Can a counter-party’s silence upon an offer be considered to be acceptance? In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. The Answer: The silence of the counter-party without any statement or action indicating to acceptance is not regarded as acceptance in commercial transactions. The Fiqh (jurisprudence of … More Can a counter-party’s silence upon an offer be considered to be acceptance?