[FULL VIDEO] Is Cryptocurrency Permissible in Sharia Law or Others?
Dr Bashir Aliyu Umar, says that Cryptocurrency is permissible in Sharia Law if these conditions are met.
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He explained that other laws governing various currencies including paper money, trading of gold and silver etc applies to cryptocurrencies.
Read Also: What the New SEC Nigeria Regulations on Cryptocurrency Means For Cryptocurrency Trades and Operators in Nigeria.
“He notes that leverage taking, and trading in cryptocurrencies is same as leverage in forex, the contract itself is Haram. If the leverage trading of cryptocurrencies are made in Sharia compliant way that is permissible, aside this, trading in cryptocurrencies becomes permissible once its spot trading and there is no leverage.”
Two Conditions that Must Be Meet
- It has to be spot trading; no delay in settling transactions.
- There should be no leverage. If there is a Leverage, it’s has to be Sharia complaint like done in some Sharia transactions like the Tawarruq across Islamic financial institutions. No speculations otherwise it’s Haram.
He also spoke about ponzi scheme and networking programs targeted at squandering investors’ funds are fraudulent programs and should be avoided.
About Dr Bashir Aliyu Umar.
Dr Bashir Aliyu Umar is a member of Shariah Committee of International Shariah Research Academy for Islamic Finance (ISRA) and International Islamic Liquidity Management Corporation.