Research Papers

Research Paper: Decoding Compliance of Initial Coin Offerings

May 28, 2018

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

Research Paper: The Shariah Factor in Cryptocurrencies and Tokens

May 28, 2018

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

Zakat on share investments: determining a proxy for calculation

May 18, 2018

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

Research paper: Zakat on Cryptocurrencies

May 17, 2018

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

A Shariah Analysis of Ownership and the Concept of Trusts

February 1, 2018

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

Shariah Interpretations of Bitcoin

December 30, 2017

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

Bitcoin: Shariah Compliant?

August 24, 2017

The concept of money has been evolving across time. Goods, gold, silver, banknotes, electronic money have all played the role of money. The birth of blockchain technology gave rise to an innovative, decentralised peer to peer payment system called Bitcoin. This gives a glimpse of a futuristic cashless, digital economy. With all the excitement and … More Bitcoin: Shariah Compliant?

Shariah Compliant Profit Distribution

June 24, 2017

The following points are a few Islamic guidelines to assist in profit sharing and distribution: Profits must not be guaranteed or fixed in absolute terms for any business partner. Thus, a fixed amount in numerals cannot be set as a profit share for any partner. Profit ratios must not be set as a percentage of … More Shariah Compliant Profit Distribution