Sunday, July 16, 2017

The Shariah rule on receiving ‘cashback’ from electronic wallets or payment wallets

The following is the translation of an answer by Ustadh Abu Khaled al-Hejazi, please refer to the Arabic original for exact meanings.


What is the rule on receiving ‘cashback’ from electronic wallets or payment wallets? Many of the electronic wallets give a cashback of 5% and sometimes even more upon using their wallets to make payments such as the electricity bill and so on, is this ‘cashback’ considered from Riba?
In addition to this when these electronic wallets are recharged, we receive more than the amount we recharge for. For eg, if we recharge the payment wallet for 100 Riyals we receive 110 Riyals in our electronic wallet, is this additional amount riba, this is while keeping in consideration the fact that these wallets are not banks.


The electronic wallet is a digital application which organizes payments digitally, and it includes a wallet which stores the users details in an encrypted form on the application or the server of the payment wallet company. The user of these wallets can receive and send money through the wallet and he can also make purchases and pay bills using the payment wallet.
There are certain important points which are related to the recharge of the payment wallet and payments using the payment wallet.
Firstly, upon payment of bills using the payment wallet, the user receives a discount of 5 to 10% on the value of invoice and this discount is known as cashback. And this discount is either from the payment wallet company and sometimes from the seller.
Secondly, when someone recharges a payment wallet account, he sometimes receives an additional amount on his wallet. So for eg, he recharges his account for 100 Riyals but receives 110 Riyals in his wallet.
Upon payment from the wallet the amount is transferred from the account of the sender to the account of the receiver and he can then convert the amount from the wallet to physical notes or transfer the amount to his bank through the payment wallet.
This is the reality of the payment wallets and the Shari rule on payment wallets is as follows
1. The reality of payment wallets is the reality of cheques and sukuk and the money stored in the payment wallets is similar to the money stored in a current account in a bank
2. Upon making payments using the payment wallet, if the payer receives a discount (cashback) from the ‘seller’ it is allowed.
This is because the prices of goods and services is decided by those who are transacting in it. Allah (swt) said
إلا أن تكون تجارة عن تراض منكم
only [in lawful] business by mutual consent.[TMQ Nisa:29]
So if the seller is ready to sell his goods or his services at a price lower than the market price then it is allowed. The principle in sale and trade is that it is ‘halal’ i.e ‘permitted’
Allah (swt) says
وأحل الله البيع
Allah has permitted trade [TMQ BAqarah:275]
3. Upon making payments using the payment wallet, if the payer receives a discount (cashback) from the payment wallet itself , then it is not allowed because this is discount or cashback is Riba. It is similar to the reality of a bank where upon depositing the money the depositor receives interest which is money received on money and this is Riba.
4. As for recharging the account for 100 and receiving 110 , this additional 10 Riyals that is received is considered from riba.
This Is because the 100 Riyals that is deposited in the payment wallet is deposited only for storing which the user would utilize upon his need and it is prohibited to pay an additional amount for storing an amount and it is considered as riba.
Allah knows the best.
Abu Khaled al-Hejazi

Q&A: Disposal of Haram Funds & Deceit in Trade

Assalamu Alaikum Wa Rahmatullah Wa Barakatuhu our Ameer, may Allah elevate you and bring victory to this Ummah by your hands.
If I may, I have two questions:
The first: In your Answer to the Question to a brother regarding stocks, you said in the Answer: If you give authority to your mother who is kaffir to sell the shares after you learned that they (stocks) are forbidden, in a certain period, then you must dispose of the profits of your shares in this specific period by spending them in the interest of the Muslims. What is the evidence that he should put it in the interest of the Muslims as long as he is not the owner of this money in the Shariah, how is it allowed for him to dispose of it?
The second question: I work in the field of selling vegetables as a peddler. I buy from the market that is about forty kilometers away from me. Sometimes I find a blemish in the commodity … It is customary that if the owner of the discount shop or the so-called “retailer” is asked to return an item because of the blemish, he will reduce the price of that commodity.  If I returned the item on the same day, the transport costs would probably cost me more than the price. Is this indemnity i.e. the difference in the prices of the not defected and defected commodities, discount that we are asking forbidden to take?
From Yusuf Abu Islam

Wa Alaikum Assalam Wa Rahmatullah Wa Barakatuhu
First: The answer to the first question on the disposal of Haram funds:
1- It seems that you were confused and assumed that our statement: “you must dispose of the profits of shares during these five months and use it for the benefit of Islam and Muslims.” meant charity, that is, that the man will get a reward in placing it in the interests of Muslims, but the issue is not so, we said “dispose of it”, that is, as if you have unwanted things in your home and you want to get rid of them, you undoubtedly take them and put them in the right place, that is, you do not take these items and throw them in the streets and say that you got rid of them, instead you will take them and dispose of them where it is suitable for them, and this means you will choose a place for these unwanted items without harming anyone and will choose the most appropriate place, isn’t that so. It is not reasonable to take these excesses and throw them in the way of people and cause them harm.
That is why we said that he should disposed of it and place in the interests of Muslims, and he must not take this money for example and throw it to the ground, or put it in the garbage container! My brother Yusuf, he must dispose of it in the most suitable place. But it is not charity that he is rewarded for. Ahmad extracted in his Musnad from Abdullah Ibn Mas’ood that he said, the Messenger of Allah ﷺ said: «… وَالذي نفسي بيده…لَا يَكْسِبُ عَبْدٌ مَالًا مِنْ حَرَامٍ، فَيُنْفِقَ مِنْهُ فَيُبَارَكَ لَهُ فِيهِ، وَلَا يَتَصَدَّقُ بِهِ فَيُقْبَلَ مِنْهُ، وَلَا يَتْرُكُ خَلْفَ ظَهْرِهِ إِلَّا كَانَ زَادَهُ إِلَى النَّارِ، إِنَّ اللَّهَ عَزَّ وَجَلَّ لَا يَمْحُو السَّيِّئَ بِالسَّيِّئِ، وَلَكِنْ يَمْحُو السَّيِّئَ بِالْحَسَنِ، إِنَّ الْخَبِيثَ لَا يَمْحُو الْخَبِيثَ» “… He who my soul is in his hand … a slave who earns money that is Haram, and spends from it will not get the blessing on it, and he will not be rewarded for giving from it in charity, and he what he leaves behind will be his provision for Hellfire. Allah does not erase the bad with the bad, but He erases the bad with the good. Evil does not remove evil.”
2- For further information, it was clearly narrated by some of the fuqaha that a person should spend Haram wealth according to the Shariah. They quoted as evidence what was narrated from Asim ibn Kulaib from his father about a man from the Ansar. He said: “We went out with the Messenger of Allah in a funeral, I saw the Messenger ﷺ on the grave advising the undertaker: widen before his legs, widen before his head, when he came back, he was received by a woman’s servant, and brought food, and he placed his hand on the food and the people followed, they ate, our fathers looked at the Messenger of Allah ﷺ while he was chewing a bite, he ﷺ said: «إني أجد لحم شاة أخذت بغير إذن أهلها» “This is a sheep’s meat taken without the permission of its people”, so the woman said: O Messenger of Allah, I sent to the Baqi to buy me a sheep, but he did not find one, so I sent to my neighbour -who bought a sheep – to send it to me for its price, but it did not happen, I sent to his wife, and she sent it to me, he ﷺ said: «أطعميه الأسارى» “Give it to the captives (feed them).”)
In other narration, the word used was more comprehensive than the word of the interests of the Muslims; they spoke regarding the areas of charity spending generally, such as: Giving it to the poor or building mosques because these things are areas of charity spending. This is the opinion of Hanafis: It was narrated in Hashiyat Ibn ‘Abidin (3/223), and Al-Maliki’s in Al Jami’ Li Ahkam Al Qur’an by Qurtubi (3/366).
Some scholars said to “spend it in the way of Allah” i.e. “Jihad”. It is one of the views of Shaikh Al-Islam Ibn Taymiyah, where he said in the “Majmoo’ Al-Fatawi”(28/401), (even if the man had obtained Haram money by his hand and could not return it to its owner for not knowing him, and so on… then he should spend it in the way of Allah, this is where it should be spent. The one with many sins the greatest remedy is Jihad; and the one who wants to get rid of Haram and seek repentance but cannot give back the money to it owners, then let him spend it in the way of Allah on behalf of its owners, because this is the way to good deeds that will be his salvation due to the reward of Jihad…). And there are many other narrations.

Secondly, the answer to the second question about your work in selling vegetables, and this is the text of your question:
I work in the field of selling vegetables as a peddler. I buy from the market that is about forty kilometers away from me. Sometimes I find a blemish in the commodity … It is a custom that if the owner of the discount shop or the so-called “retailer” is asked to return an Item because of the blemish, he will reduce the price of that commodity.  If I returned the item on the same day, the transport costs would probably cost me more than the price. Is this indemnity i.e. the difference in the prices of the not defected and defected commodities, or discount that we are asking forbidden to take?) End of quote.
The answer is that this is explained in “The Economic System in Islam” in the chapter of “Deceit in Trade” (English version, page 210/ Arabic version p. 193), it states:
(…A Muslim is not allowed to deceive in the commodity or the currency. Rather he has to show the defect in the commodity, and explain the forgery in the currency. He is not allowed to deceive in the commodity so as to circulate it or to sell it with a higher price. Nor is he allowed to deceive in the currency so that it would be accepted as a price of a commodity. This is because the prohibition of the Prophet ﷺ regarding that was decisive. Ibn Majah narrated from `Uqbah ibn `Amir from the Prophet ﷺ that he said: «المسلم أخو المسلم، ولا يحل لمسلم باع من أخيه بيعاً فيه عيب إلاّ بيّنه له» “The Muslim is the brother of the Muslim, and it is not allowed for a Muslim to buy a faulty thing from his brother without him being shown that fault.” Bukhari narrated also from Hakeem ibn Hizam from the Prophet ﷺ that he ﷺ said: «البيّعان بالخيار ما لم يتفرقا، فإن صدقا وبينا بورك لهما في بيعهما، وإن كتما وكذبا محقت بركة بيعهما» “The two traders (the seller and the purchaser) have the choice (to conclude or cancel the deal) before they departed (from each other). If they were honest and explained (the commodity and the currency) their sale will be blessed. But if they hid (the defect) and lied (to each other) the blessing of their sale will be eradicated.” The Prophet ﷺ also said: «ليس منا من غش» “No one of us is allowed to deceive”, as narrated by Ibn Majah and Abu Dawud from Abu Hurairah. And whoever earned something through deceit and cheating would not (legally) possess it, because deceit is not one of the means of ownership, rather it is of the prohibited means, and thus it (the thing obtained by deception) is a prohibited and illegal (Suht) property. The Prophet ﷺ said: «لا يدخل الجنة لحم نبت من سحت، النار أولى به» “Any (human) flesh that grows from illegal (suht) property will not enter paradise, then the Hellfire deserves it more”, narrated by Ahmad from Jabir ibn Abdullah. If fraud occurred, whether in the commodity or the currency, then the cheated person has the choice either to dissolve the contract or to carry it out, without more options. So if the purchaser wished to keep the defective commodity and take the indemnity i.e. the difference in the prices of the not defected and defected commodities, he has no right to do so, because the Prophet ﷺ did not allow the taking of the indemnity; rather he gave the choice between two matters: «إن شاء أمسك، وإن شاء ردها» “If he wished he could keep (the commodity) or return it back”, as narrated by Bukhari from Abu Hurairah.)
Therefore, if you find a defect in the commodity after purchasing it, then you have the option either to return it to its owner and take what you have paid for it, or to accept it … but you can not accept it and take the indemnity i.e. the difference in the prices of the not defected and defected commodities. As for the long distance between you and the market that you bought the items from, it does not affect the ruling. As in the Hadeeth, you have only one of two things: «إن شاء أمسك، وإن شاء ردها» “If he wished he could keep (the commodity) or return it back”, (as narrated by Bukhari from Abu Hurairah).

Your brother,
Ata Bin Khalil Abu Al-Rashtah
15 Shawwal 1438 AH
9/7/2017 CE
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The Aim of Turkish Military Intervention is to Stifle the Syrian Revolution and Eliminate It

There is no doubt that the Turkish regime had a prominent role in the events of Ash-Sham’s revolution at all levels; it was an effective tool of the Kaffir West to anesthetize the revolution from its inception as an introduction to eliminate it later; its role emerged in many areas to stifle Ash-Sham’s revolution and weaken the revolutionaries’ resolve and control their decision to serve the political solution that America wants. Since the beginning of your blessed revolution the Turkish regime worked to contain dissident officers and put them in camps similar to prisons in order to remove them from the arena of conflict so as not to benefit from their expertise. In addition it linked the factions’ leadership to it through a range of actions, of which most the important is the dirty political money, which greatly and effectively contributed to keeping them divided and fueling the fire of fighting between them, in addition to control them and their decision. The result of these actions is that the factions became tools of the Turkish regime that it moves according to its wishes; the handover of Aleppo to the tyrant of Ash-Sham and the attendance of the Riyadh Conference and its result thereof and the attendance of the Astana Conference and the resulting agreement on the areas of reducing tension and forming the so-called Euphrates shield to divert the point of conflict is but one of its fruits.
And today the Turkish regime continues its march in finishing off the revolution of Ash-Sham; the Turkish regime is preparing to enter the liberated areas in the province of Idlib and its countryside and the province of Aleppo, the last strongholds of the revolution and the most steadfast and firm. And this intervention is not a victory for the oppressed and the displaced, and not to stop the pure blood falls that irrigated the blessed land of Ash-Sham, which it bears responsibility for. It opened Incirlik Air Base, which allowed planes of the spiteful crusaders to launch from and discharge its anger on the people of Ash-Sham and reduce their bodies to fragments… We hoped that the Turkish army intervenes to defend the truth to eliminate injustice, deter the oppressors and establish the rule of Allah (swt), in which Islam and Muslims are victorious, but the blatant truths show the reality of the Turkish intervention and reveal the truth of the Turkish regime and reveal the falsity of its claims. Its intervention is only to serve the American political solution to eliminate Ash-Sham’s revolution and its sincere sons. So do not be fooled by the crocodile tears, and deceiving slogans, and observe the deceiving knife that will slaughter us, and their styles that hide behind humanity and dazzling words, which does not deceive anyone any more. This is the method of tyrants who want to deceive people, they decorate their misdeeds with their good words, and the symbol of the tyrants is Pharaoh who when was about to kill the Prophet of Allah, Musa (peace be upon him) claimed that he wants to fight corruption!
وَقَالَ فِرْعَوْنُ ذَرُونِي أَقْتُلْ مُوسَى وَلْيَدْعُ رَبَّهُ إِنِّي أَخَافُ أَنْ يُبَدِّلَ دِينَكُمْ أَوْ أَنْ يُظْهِرَ فِي الْأَرْضِ الْفَسَادَ
“And Pharaoh said, “Let me kill Moses and let him call upon his Lord. Indeed, I fear that he will change your religion or that he will cause corruption in the land.”
(Ghafir: 26)
O Patient Muslims in the land of Ash-Sham: We have vowed ourselves to be the leader who does not lie to his people, and the advisor who reveals to you the deceits and tricks of those who want to harm our Ummah, so that our ship will survive and reach its goals. All of us are in one boat; either we all live or we all die. Our only solution is to hold on tight to the rope of Allah and cut off the links with the Kaffir West, its agents and regimes, and to unite around a clear political project emanating from our Islamic creed and a conscious and sincere political leadership that base its actions on the commands of Allah (swt):
يَا أَيُّهَا الَّذِينَ آَمَنُوا اسْتَجِيبُوا لِلَّهِ وَلِلرَّسُولِ إِذَا دَعَاكُمْ لِمَا يُحْيِيكُمْ وَاعْلَمُوا أَنَّ اللَّهَ يَحُولُ بَيْنَ الْمَرْءِ وَقَلْبِهِ وَأَنَّهُ إِلَيْهِ تُحْشَرُونَ
“O you who have believed, respond to Allah and to the Messenger when he calls you to that which gives you life. And know that Allah intervenes between a man and his heart and that to Him you will be gathered”
(Al-Anfal: 24)

Media Office of Hizb ut Tahrir in Wilayah Syria
Sunday, 08th Shawwal 1438 AH
02/07/2017 CE
No: 1438 /022

Monday, July 10, 2017

Gheebah (Backbiting) - The Major Sin (Kabira) That Da'wah Carriers Can Fall Into

The carriers of the Islamic Da'wah usually refrain from the major sins (Kaba'ir) as they endeavor to ensure that their mentalities and dispositions are in line with the Islamic creed. The Kaba'ir are grave sins which are not easily forgiven.

Allah (swt) says:

 إِنْ تَجْتَنِبُوا كَبَائِرَ مَا تُنْهَوْنَ عَنْهُ نُكَفِّرْ عَنْكُمْ سَيِّئَاتِكُمْ وَنُدْخِلْكُمْ مُدْخَلًا كَرِيمًا 
"If you avoid the major sins which you are forbidden, We will remove from you your lesser sins and admit you to a noble entrance [into Paradise]." [TMQ An-Nisa: 31]

And He (swt) says:

الَّذِينَ يَجْتَنِبُونَ كَبَائِرَ الْإِثْمِ وَالْفَوَاحِشَ إِلَّا اللَّمَمَ إِنَّ رَبَّكَ وَاسِعُ الْمَغْفِرَةِ هُوَ أَعْلَمُ بِكُمْ إِذْ أَنْشَأَكُمْ مِنَ الْأَرْضِ وَإِذْ أَنْتُمْ أَجِنَّةٌ فِي بُطُونِ أُمَّهَاتِكُمْ فَلَا تُزَكُّوا أَنْفُسَكُمْ هُوَ أَعْلَمُ بِمَنِ اتَّقَى

"Those who avoid the major sins and immoralities, only [committing] slight ones. Indeed, your Lord is vast in forgiveness. He was most knowing of you when He produced you from the earth and when you were fetuses in the wombs of your mothers. So do not claim yourselves to be pure; He is most knowing of who fears Him." [TMQ An-Najm: 32]

Most of the Kaba'ir such as theft, murder, highway robbery (hiraba), fornication, adultery and consuming intoxicants require effort, planning and actions of the limbs so the one who calls to the deen of Allah and attempts to abide by his Shariah (law) is able to avoid them. However, one of the Kaba'ir that is much easier to fall into for the Muslim and the Da'wah carrier involves actions of the tongue that is relatively much easier to fall into.

Today, gossip, negatively talking about others and even slander are commonplace in the absence of an Islamic society governed by the laws of Allah (swt). From 'backchat' at the workplace to the gossip on family members, we are engulfed by an environment where people speak loosely and do not consider the grave sin they may be falling into. In the course of calling to the resumption of the Islamic way of life it is natural to encounter many types of people, some who may agree with us others who may disagree and even those who become argumentative and vehemently argue against our point of view. Da'wah carriers must guard themselves against falling into the grave sin of backbiting that angers Allah (swt) and is diametrically opposed to the very call they carry.

The following is a reminder to us all from the chapter titled 'The best of you in morals' in the book, 'The Essential Elements of the Islamic Disposition (Nafsiyyah)' by Hizb ut-Tahrir:

"Backbiting and slander:
Backbiting means to mention something about your brother which he does not like. If it is not true then it is slander. Both are harām due to the following evidences:
He (swt) said:
]وَلاَ يَغْتَبْ بَعْضُكُمْ بَعْضًا أَيُحِبُّ أَحَدُكُمْ أَنْ يَأْكُلَ لَحْمَ أَخِيهِ مَيْتًا فَكَرِهْتُمُوهُ وَاتَّقُوا اللَّهَ إِنَّ اللَّهَ تَوَّابٌ رَحِيمٌ. [
“Neither backbite one another. Would one of you like to eat the flesh of his dead brother? You would hate it (so hate backbiting). And fear Allah. Verily, Allah is the One Who accepts repentance, Most Merciful.” [TMQ Al-Hujurāt:12]
He (swt) said:
]هَمَّازٍ مَشَّاءٍ بِنَمِيمٍ. [
A slanderer, going about with calumnies.” [TMQ Al-Qalam:11]
Abu Hurayrah (ra) narrated that the Messenger of Allah (saw) said:
}أتدرون ما الغيبة؟ قالوا: الله ورسوله أعلم قال: ذكرك أخاك بما يكره، قيل: أفرأيت إن كان في أخي ما أقول؟ قال: إن كان فيه ما تقول فقد اغتبته، وإن لم يكن فيه ما تقول فقد بهتّه. {
“Do you know what gheebah is?” They said, “Allah and His Messenger know best.” He said, “It is to mention something about your brother (in his absence) that he would hate.” It was said, ‘What if what I say about my brother is true?’ He r said: “If what you said about him is true then you would have backbitten him, and if it is not true, then you would have slandered him (buhtaan).” Reported by Muslim.

Abu Hurayrah (ra) narrated that the Messenger for Allah (saw) said:
}كل المسلم على المسلم حرام دمه وعرضه وماله. {
“Every thing of a Muslim is sacred to one another in his blood, honour and property”         Reported by Muslim
Abu Bakrah (ra) narrated that the Messenger for Allah (saw) said in his farewell speech:
}إن دماءكم وأموالكم وأعراضكم حرام عليكم، كحرمة يومكم هذا، في شهركم هذا، في بلدكم هذا، ألا هل بلغت. {
“Verily your blood and your wealth and your honour are sacred (to one another) as the sacredness of this day, as the sacredness of this month, as the sacredness of this land. O Allah, have I given the message?”                                                                                                              (Agreed upon)

‘Ayisha (ra) narrated that the Messenger of Allah (saw) said to his companions:
}تدرون أربى الربا عند الله؟ قالوا: الله ورسوله أعلم، قال: فإن أربى الربا عند الله استحلال عرض امرئ مسلم، ثم قرأ رسول الله: وَالَّذِينَ يُؤْذُونَ الْمُؤْمِنِينَ وَالْمُؤْمِنَاتِ بِغَيْرِ مَا اكْتَسَبُوا فَقَدِ احْتَمَلُوا بُهْتَاناً وَإِثْماً مُّبِيناً. {
“Do you know what the worst form of usury is in the sight of Allah?” They said, “Allah and His Messenger know best” The Prophet (peace be on him) replied, “The worst form of usury is the violation of the personal honour of a Muslim.” He then recited, “Those who harm believing men and believing women undeservedly have laid upon themselves a calumny and a manifest sin.
Reported by Abu Ya’la. Al-Mundhiri and al-Haythami said the transmitters are of the Sahīh works.

Listening to backbiting is harām due to the saying of Allah (swt):
]وَالَّذِينَ هُمْ عَنْ اللَّغْوِ مُعْرِضُونَ. [
“And those who turn away from Al-Laghw (dirty, false, evil vain talk, falsehood, and all that Allah has forbidden).”      [TMQ Al-Mu’minūn:3]
He (swt) said:
]وَإِذَا رَأَيْتَ الَّذِينَ يَخُوضُونَ فِي آيَاتِنَا فَأَعْرِضْ عَنْهُمْ حَتَّى يَخُوضُوا فِي حَدِيثٍ غَيْرِهِ وَإِمَّا يُنسِيَنَّكَ الشَّيْطَانُ فَلاَ تَقْعُدْ بَعْدَ الذِّكْرَى مَعَ الْقَوْمِ الظَّالِمِينَ. [
“And when you (Muhammad) see those who engage in a false conversation about Our Verses (of the Qur’ān) by mocking at them, stay away from them till they turn to another topic. And if Shaitan (Satan) causes you to forget, then after the remembrance sit not you in the company of those people who are the Zalimun (polytheists and wrong­doers, etc.).” [TMQ Al-An’aam:68]

The Muslim should defend the honour of his brother in his absence due to the hadīth of Abu Hurayrah (ra) reported by Muslim:
}المسلم أخو المسلم لا يظلمه ولا يخذله ... {
“The Muslim is the brother of another Muslim, he is not unjust to him, and nor does he desert him.”
The one who is able but does not defend his brother in his absence then that constitutes deserting him. This is due to the hadīth of Jabir (ra) reported by Abu Dawud. Al-Haythami said the isnad is hasan. The hadīth states that the Messenger of Allah (saw) said:
}ما من مسلم يخذل امرءاً مسلماً في موضع تنتهك فيه حرمته، وينتقص فيه من عرضه، إلا خذله الله في موطن، يحب فيه نصرته وما من امرئ ينصر مسلماً في موضع ينتقص فيه من عرضه، وينتهك فيه من حرمته، إلا نصره الله في موطن يحب فيه نصرته. {
“No (Muslim) man will desert a man who is a Muslim in a place where his respect may be violated and his honour aspersed without Allah deserting him in a place where he wishes his help; and no (Muslim) man who will help a Muslim in a place where his honour may be aspersed and his respect violated without Allah helping him in a place where he wishes his help.”
Similar ahadīth have been reported by Abu Darda’, Asma bint Yazeed, Anas, ‘Imrān b. Husayn and Abu Hurayrah. All of these already have been mentioned in the chapter on love and hate for Allah’s sake. The Messenger of Allah r approved what Mu’adh (ra) did when he defended the honour of his brother Ka’b b. Maalik. In the hadīth narrated by Ka’b b. Malik t in a long hadīth about his repentance, the Prophet (saw)said:
}ما فعل كعب بن مالك؟ فقال رجل من بني سلمة: يا رسول الله حبسه برداه والنظر في عطفيه فقال له معاذ بن جبل: بئس ما قلت، والله يا رسول الله ما علمنا عليه إلا خيراً، فسكت رسول الله. {
“O Messenger of Allah, he was hindered by his garments and pleasure for his clothes and his self.” Mu’adh bin Jabal said: “What a wretched statement you have uttered. O Messenger of Allah, we do not know of him save goodness.” Hence, the Messenger of Allah r became silent.”                                                                          (Agreed upon)
The scholars permitted backbiting for six reasons: to complain, in seeking help to change a munkar, seeking a legal verdict, warning Muslims of evil, which is considered naseehah, mentioning the sin of the one who openly commits sins and to introduce someone. An-Nawawi said in his al-Azkaar ‘in the majority of these cases there is agreement that backbiting is allowed.’ He said: ‘their evidence is clear from the sahīh and mashur hadīths.’ He reported this in his Riyadh as-Saliheen where he mentioned some of the evidences. As-Sanaa’i also mentioned the evidences in Subul as-Salaam. Al-Qarafi sad in az-Zakhīrah: ‘Some scholars exempted 5 things from the prohibition of backbiting and they are as follows: advice (an-Naseeha), disparagement and attestation (jarh wat ta’deel) of witnesses and hadīth narrators, those openly committing sins, people who commit innovation (bid’ah) and write misguiding books and when the one who says backbiting and the one who hears it, both knew of the subject of backbiting’."

So the next time someone raises something negative about a brother or sister who we have known to be upright let us be careful and guard ourselves from falling into a major sin which is not easily forgiven. Even if we do not see eye to eye with them or have disagreements with them, let us defend their honour in their absence. When coming across gossip about the believers, let us not fall into the trap of Shaytan and allow it to pollute our minds.

He (swt) said:
]يَا أَيُّهَا الَّذِينَ آمَنُوا اجْتَنِبُوا كَثِيرًا مِنْ الظَّنِّ إِنَّ بَعْضَ الظَّنِّ إِثْمٌ. [
“O you who believe! Avoid much suspicions, indeed some suspicions are sins.” [TMQ Al-Hujurāt:12]
Ibn ‘Abbas said in the Tafseer (exegeses) of this ayah: Allah (swt) forbade the believer from thinking badly of another believer.
Abu Hurayrah (ra) narrated that the Messenger of Allah (saw) said:
}إياكم والظن، فإن الظن أكذب الحديث. {
“Beware of suspicion for suspicion is the most mendacious of talk.”
To think badly of a believer who is apparently good and upright is not allowed. Rather it is recommended that one thinks well of him.

May Allah (swt) overlook our mistakes, forgive our sins and allow us to people of Taqwa (piety).

Muhammad Abdullah

Friday, June 23, 2017

The reality of cryptocurrencies such as Bitcoin and the shari’ah rule regarding them

The following is the translation of an Ijtihad by Ustadh Abu Khaled al-Hejazi, please refer to the Arabic original for exact meanings.
Today, Bitcoin and other cryptocurrencies are proposed as alternate currency models compared to the traditional currencies such as the Dollar, Riyal and euro, albeit there are some fundamental differences between the two and the most important being that cryptocurrencies are a digital currency that exist only on the Internet without having a physical or tangible existence to it.
In addition to this there is no centralized organization that issues the currency and there is no real world asset that backs these currencies.
The users of these currencies can purchase the currencies through Cryptocurrency exchange websites on the internet and they can also convert these currencies back into traditional currencies.

Who issues cryptocurrencies?

Contrary to traditional currencies which are generally backed by assets such as gold or by other stronger currencies, cryptocurrencies are supported and generated by the users of the currency themselves. Anyone interested in creating a cryptocurrency requires an Internet connection attached to a computer where he can install the currency ‘mining’ software and he can then use the mining software to generate the currency. The ‘mining’ software utilizes the computational power of the computer to run an algorithm which upon successful completion creates a certain amount of the cryptocurrency. As the total amount of currency issued by the system increases, the algorithm becomes difficult hence leading to longer computation periods to generate the same amount of cryptocurrency.

Cryptocurrencies also have a limit to the total amount of currency that can be generated and this is to be able to maintain a controlled supply over the currency. For instance, the total number of bitcoins that can be mined is 21 Million BTC.

Where can Cryptocurrencies be used?

Cryptocurrencies can be used to trade on some ecommerce websites, in addition to this, they can be exchanged for physical currencies with people who are interested in purchasing them. Today cryptocurrencies have become a speculative trade with people investing millions in them because of their continuously increasing price. For instance, the cost of one of the more popular cryptocurrencies, Bitcoin was 14 USD in 2011 and it has increased manifold to reach 2800 USDin 2017.

The reality of Issuing Currencies & its shari Hukm

Each State adopts a specific unit of something, making it the basis to which goods and labour are related and by which they are measured. It coins the unit in a specific form and fashion which is specific to it along with a fixed weight and value. Societies have, from the earliest times, made this measuring unit from things with intrinsic value. They adopted gold and silver as a measure to which all goods and labour are related, because gold and silver have intrinsic value in the world at large. They have issued currency with a specific form and modeas well as a specific fixed weight and value.
The state which adopts gold or silver units as the basis for its currency follows the metallic system. If it makes the gold unit the basis for its currency which it issues as currency for itself, then it follows the gold standard. If it makes the silver unit the basis of its currency which it issues, then it follows the silver standard. If it makes both the gold and silver unit together as the basis for its currency, then it follows the gold and silver standard or the bimetallic standard.
As for the state which adopts paper currency such that goods and labour are exchanged with it, it follows the paper standard. If the paper it prints, as money and currency is representative of gold or silver, the state follows the representative paper currency standard. If the paper it prints and makes as its currency has gold or silver backing equal to a specific proportion of its value, it follows the paper currency standard of the secured type.
If the currency it prints, issues and makes as its money and currency is substitutable for gold or silver, nor backed by them, the country is considered to be following the compulsory paper currency or fiat standard.
The currency which was accepted and implemented by the Prophet (saw) was the Gold and silver currency i.e. Dirhams and Dinars. This Islamic currency fulfilled three important conditions.

Dirham & Dinar — The Gold & Silver currency of the Islamic Khilafah State

  • It was a basis to evaluate the goods & services, i.e it was a measure for prices and wages.
  • It was issued by a central authority which undertook the responsibility of issuing the dirhams and the dinars and it was not an unknown body.
  • It was widespread and easily accessible among the people and it was not exclusive to a group of people only.
After having studied the reality of a cryptocurrency, how it is issued and how it is utilized. I evaluate it in light of the above three conditions that should be fulfilled by any currency and I find that cryptocurrencies do not fulfill the three above mentioned conditions.
1.Cryptocurrencies are not issued by any centralized institution or established organization rather they can be issued by anyone who has the relevant mining software and a computer with an internet connection. Even if cryptocurrencies are termed as ‘currencies’ the reality of these currencies is that they are no more than digital asset which anyone with the capability can create and it has a price in the market which increases and decreases based on the demand and supply. Therefore, the rule of currencies does not apply on cryptocurrencies.
In short, Cryptocurrencies fail on the condition that the currency should be issued by a central organisations or a well-known body and not by a unknown body or people.
2.Cryptocurrencies are a digital asset which have no tangible reality except the trust and confidence of some people in it. In addition to this, cryptocurrencies due to their nature of being tied to the internet is strictly limited to a small group of the population.
In short, cryptocurrencies fail on the condition that the currency should be easily accessible and widespread, rather it is limited to a small group of people who believe in its value i.e. it is not a currency for the society.
3.The majority of the countries do not accept cryptocurrencies as a legitimate currency and therefore they cannot be used to purchase most of the goods and services.
In short, cryptocurrencies fail on the condition that the currency should be a basis to evaluate the goods and services, i.e to be a measure for prices and wages, rather it is a tool for barter with select goods and services.

This is the reason why cryptocurrencies such as Bitcoin are not considered a currency from a Shari’ point of view.

As for the sale and purchase of Cryptocurrencies.

Cryptocurrencies are no more than an asset, however this asset is issued by an unknown source i.e the asset has not backing in other words it is not a real asset. In addition to this, cryptocurrencies are a big domain for fraud, deception, speculation and cheating and therefore it is not allowed to trade in it i.e. it is not permitted to buy or sell them.

The conclusion is that cryptocurrencies such as bitcoin are only ‘assets’ issued by an unknown (majhool) source which have no real value and no real backing and therefore is open to speculation and fraud and an opportunity for the colonialist capitalist countries especially America to exploit such things so as to plunder the resources of the people.
This is the reason why it is not allowed to purchase cryptocurrencies due to the shari’ evidences that prohibit the sale and purchase of any unknown ‘majhool’ asset, and the evidences for this are:
1.Abi Saeed Al Khudri Reported
نهى رسول الله صلى الله عليه وسلم عن شراء ما في بطون الانعام حتى تضع ، وعما في ضروعها الا بكيل او وزن وعن شراء العبد وهو آبق ، وعن شراء المغانم حتى تقسم وعن شراء الصدقات حتى تقبض وعن ضربة الغائص
“The Messenger of Allah (ﷺ) forbade selling what is in the wombs of cattle until they give birth, and selling what is in their udders unless it is measured out, and selling a slave who has fled, and selling spoils of war until it has been distributed, and selling Sadaqah until it has been received, and what a diver is going to bring up.”
[Reported by Ibn Majah, Tirmidhi, Ibn Shaybah, Ahmad, Dar Qutni, Bayhaqi, Ibn Hazm]
2.Ibn Abbas reported
عَنْ ابْنِ عَبَّاسٍ أَنَّ النَّبِيَّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ نَهَى عَنْ بَيْعِ الْمَضَامِينِ، وَالْمَلَاقِيحِ، وَحَبَلِ الْحَبَلَةِ
“The Prophet (saw) forbade the trade of Al-Madameen, Al-Malaqeeh and Habal al Habala.” Reported by Tabarani.
Al-madameen is the sale of what is in the wombs of female camels. Al- malaqeeh is the sale of the breeding qualities of camels” (i.e. for stud). Habal al Habala was a transaction in the days of ignorance where A man would buy the unborn offspring of the unborn offspring of a she-camel.
3.Nafi reported from Umar that the Prophet (saw) said
عن نافع عن ابن عمر قال : نهى النبي — صلى الله عليه وسلم — عن بيع الغرر وقد أخرج مسلم النهي عن بيع الغرر من حديث أبي هريرة وابن ماجه من حديث ابن عباس والطبراني من حديث سهل بن سعد ، ولأحمد من حديث ابن مسعود رفعه : لا تشتروا السمك في الماء فإنه غرر وشراء السمك في الماء نوع من أنواع الغرر ، ويلتحق به الطير في الهواء والمعدوم والمجهول والآبق ونحو ذلك
“The Messenger of Allah (ﷺ) prohibited the Gharar sale” and Muslim reported that the prophet (saw) prohibited the sale of ‘gharar’ in the hadith by Abu Hurairah And Ibn Majah reported about it in the hadith by Ibn Abbas and Tabarani reported it in the hadith by Sahal bin Saad and Ahmad reported it in a marfoo hadith by Ibn Masood: Do not buy the fish in the water because it is gharar and purchasing fish in the water is a type of gharar, and this is linked to the birds in the air and anything that is unknown (majhool) or non-existent (ma’doom), and the run away slave and so on.
4.Muslim reported from Jabir Ibn Abdullah that
عَنْ جَابِرِ بْنِ، عَبْدِ اللَّهِ قَالَ نَهَى رَسُولُ اللَّهِ صلى الله عليه وسلم عَنِ الْمُحَاقَلَةِ وَالْمُزَابَنَةِ وَالْمُعَاوَمَةِ وَالْمُخَابَرَةِ — قَالَ أَحَدُهُمَا بَيْعُ السِّنِينَ هِيَ الْمُعَاوَمَةُ — وَعَنِ الثُّنْيَا وَرَخَّصَ فِي الْعَرَايَا ‏-رواه المسلم
The prophet prohibited Al-Muhaqalah, Al-Muzabanah, Al-Mukhabarah, and Al-Mu’awamah. (One of the narrators) ‘said: Sale years ahead is Mu’awama, and making exceptional but he made an exemption of araya.
Mukhabarah is when a wasteland is given by a person to another he makes an investment in it and gets a share of the produce. Muzabana is selling of fresh dates on the tree for dry dates with a measure. Muhaqala is selling the standing crops In the field for a customary measure.
5.Muslim reported in his Saheeh from abu Hurairah who said
أخرج مسلم في صحيحه عَنْ أَبِي هُرَيْرَةَ، قَالَ: «نَهَى رَسُولُ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ عَنْ بَيْعِ الْحَصَاةِ، وَعَنْ بَيْعِ الْغَرَرِ»
“The Messenger of Allah (ﷺ) forbade Gharar transaction and Hasahtransactions.”
Tirmidhi also reported a similar hadith from abu Hurairah
وأخرجه كذلك الترمذي عن أبي هريرة…”بيع الحصاة
وَمِنْ بُيُوعِ الْغَرَرِ بَيْعُ السَّمَكِ فِي الْمَاءِ وَبَيْعُ الْعَبْدِ الآبِقِ وَبَيْعُ الطَّيْرِ فِي السَّمَاءِ وَنَحْوُ ذَلِكَ مِنَ الْبُيُوعِ ‏.‏ وَمَعْنَى بَيْعِ الْحَصَاةِ أَنْ يَقُولَ الْبَائِعُ لِلْمُشْتَرِي إِذَا نَبَذْتُ إِلَيْكَ بِالْحَصَاةِ فَقَدْ وَجَبَ الْبَيْعُ فِيمَا بَيْنِي وَبَيْنَكَ
The prophet prohibited the ‘hasah’ Transactions. The Hasah sale is when the seller says to the buyer: ‘When I toss the pebble at you, then the sale between you and I is final.’ “The Gharar sale is the sale of ambiguous and unknown (majhoolghayr maloom)) which includes selling fish that are in the water, selling a slave that has escaped, selling birds that are in the sky and similar type of sales all of which are prohibited.
The evidences that we presented all indicate in clear terms the prohibition of the ‘Bay asSineen’ i.e selling the produce of a tree two or three years in advance for it is a sale of something that does not exist at the time of the contract. The evidences also show the prohibition of the sale of the fruit and the crops before they are clearly visible, as these are all from what is called as ‘bay al Gharar’’ The gharar sale’ or the sale of Majhool i.e the unknownand this is clearly applicable on the reality of cryptocurrencies such as Bitcoin and Ethereum as they are assets which have no known source and have no backing because they are not issued by a centralized organization, and therefore it is not permissible to buy and sell cryptocurrencies.
Abu Khaled al-Hejazi
29th Ramadhan 1438
 24th June 2017