Bitcoin Mining Trader and Luno Platforms - Shariah Compliant Crypto Trading
Question:
Assalamu Alaykum Mufti Saheb. Can we trade via bitcoin mining trader ands luno platform and can you send me the ocntact details Plz. JazakAllah Khair.
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
v
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Muhtaram
We apologize for the belated response.
Your questions refer.
The bitcoin mining trader and luno platforms essentially are crypto currency trading platforms to facilitate the storage, deposit and trading of crypto currencies.
Essentially the service provided by such platforms falls under the purview of Ijarah and therefore the rules and laws of Ijarah will be applicable. We will need to review the detailed service level agreement for a specific ruling. However we have reviewed the websites of the platforms in reference and advise that the luno savings product which charges interest is impermissible and the penalty charges for late payment (cash deposit penalty) are also impermissible.
The other issue in reference to Qabdh/custody of the actual crypto should be considered in terms of either consideration, viz. asset of value or currency. In other words, should we consider the crypto in question to be an asset of value (Mal al-Mutaqawwam), does actual possession (Qabdh) take place via the platform or not when trading such crypto currencies.
(PS. We do not provide for any such brokerage services ourselves)
And Allah Ta’āla Knows Best
(Mufti) Ismail Desai
Chairman of Shariah Board and Fatwa Committee,
Darul Iftaa, Durban, South Africa
DISCLAIMER: The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any organizations to which he may be affiliated with. The opinions and educational information proffered in this communication are based on the jurisprudential understanding and available knowledge of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another scholar may reach different juristic inferences and conclusions to those as expressed by the author. Whilst every effort has been taken to ensure total academic integrity and honesty, the author is open to corrective measures based on sound academics and juristic inferences. The Shari’ah ruling given herein is based specifically on the specific scenario in question. The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage. This answer may not be used as evidence in any court of law without prior written consent from the author. Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
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and Allah Ta'ala Knows Best
Mufti Ismail Desai
Darul Iftaa
Durban, South Africa
Disclaimer The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any organizations to which he may be affiliated with. The opinions and educational information proffered in this communication are based on the jurisprudential understanding and available knowledge of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another scholar may reach different juristic inferences and conclusions to those as expressed by the author. Whilst every effort has been taken to ensure total academic integrity and honesty, the author is open to corrective measures based on sound academics and juristic inferences. The Shari’ah ruling given herein is based specifically on the specific scenario in question. The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage. This answer may not be used as evidence in any court of law without prior written consent from the author. Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
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