When lending bitcoin is haram?Is haram taking the collateral when giving a loan?

groll

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Quote from: traderbit on July 19, 2016, 01:50:43 PM

Guys I'm worried when lending bitcoin to users.
- I know that taking interest on loans is haram but are there any other situation when giving a loan is haram?
- What if I require a collateral? Is it haram or not?
- If the user defaults am I able to spend the collateral?

I was scammed for $75 in the near past and was very pissed of that I didn't request a valid collateral.

Mods: If i posted in a wrong board please move it to the correct one.

If you worry too much because you thought is lending bitcoin is haram. Then you should stop giving out loans.

Find other investment or other business related or that accepts bitcoin so you can free yourself from engaging in haram activities.

Dank14

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Even if taking a loan is Haram, requesting for a collateral should not be Haram.

That is just safeguarding your assets.

virtualx

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Quote from: traderbit on July 19, 2016, 01:50:43 PM

Guys I'm worried when lending bitcoin to users.
- I know that taking interest on loans is haram but are there any other situation when giving a loan is haram?

No, because all currency (including Arabic) is loan or debt based. Bitcoin is not debt based, so I don't think it's haram.

Hirose UK

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Quote from: traderbit on July 19, 2016, 01:50:43 PM

Guys I'm worried when lending bitcoin to users.
- I know that taking interest on loans is haram but are there any other situation when giving a loan is haram?
- What if I require a collateral? Is it haram or not?
- If the user defaults am I able to spend the collateral?

I was scammed for $75 in the near past and was very pissed of that I didn't request a valid collateral.

Mods: If i posted in a wrong board please move it to the correct one.

I don't find out about it yet, but as long as I know interest is haram.

I've ever thought about this too (I'm muslim) bitcoin price is not stable. so I think if you lend 0.5 btc for instance when the price is $400 then he/she give it back when the price is $500, I think you will get interest.

so it's better to avoid things you're not sure because it's syubhat.

Losvienleg

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Quote from: rackam on July 24, 2016, 04:58:21 PM

FYI Most bitcoiners are atheist.

I'm not really sure of this statement that came of your hat. Lots of people are coming from Indonesia or India, where atheism is near inexistent. Some people from Europe, as me, are also heavily Christian.

rackam

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You should ask advised on your Imams or Elders, I think this is about Islam. FYI Most bitcoiners are atheist.

Losvienleg

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Gloire à la Victoire !

If you're talking about "haram", you're surely referring to Islam. Then, I guess it's not "haram" if the other guy isn't Muslim. Too, if guy scammed you, that shouldn't be a problem, but you should offer him repentance, in case he come back, even with delays.

steven0021

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Quote from: traderbit on July 19, 2016, 02:19:56 PM

Quote from: bestluck on July 19, 2016, 02:10:14 PM

For you I have found some Islamic laws about loan, and as bitcoin is currency so you can apply it the same as to other currencies. below are the details of Islamic Rules of Loan;

https://www.al-islam.org/a-summary-of-rulings-makarim-shirazi/rules-loans-qardh

http://www.islamic-laws.com/debtloanrules.htm

None of them mention collateral but thanks, I learned something new Lips sealed

Quote from: steven0021 on July 19, 2016, 02:05:40 PM

Not an expert on Islam law here (I'm not even Islam), but looks like there's a good explanation here complete with references: https://islamqa.info/en/140078

It pretty much said that it is indeed haram.
But. I think you can get a more clear answer from your local imam.

The website you mentioned is the first result on google when I research about collateral, it says that if I benefit from collateral it is counted as haram but what if i just get my money back by selling that collateral and send back the rest to the user who took the loan?

Hmm you got a point. Only scenario there is using the collateral and not selling it.
I think the first link provided by bestluck does have that scenario. Just look for the word "mortgage".

Quote

2317. * If the creditor demands the repayment of debt when it is due, and the debtor does not repay it, the creditor can sell the mortgaged property and collect his dues, provided that he had been authorized to do so. And if he was not authorized to do so, it will be necessary to obtain permission from the debtor. And if the debtor is not available, he should obtain permission for the sale of the property from the Mujtahid. In either case, if the sale proceeds exceed the amount due to him, he should give the amount in excess of his debt to the debtor.

isvicre

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A very interesting topic. I'm a bit surprised anyone involved with cryptocurrency or interested in lending would impede themselves in this way. I don't mean any offence, but can't you just do what everyone else does and interpret these teachings or rules in a way that benefits you? Or rather not benefits, but keeps you on a level playing field. If you get shit about it in your afterlife, you can always claim it's not real money but virtual currency and the old texts didn't make clear how to handle such digital, virtual bytes.

traderbit

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Quote from: bestluck on July 19, 2016, 02:10:14 PM

For you I have found some Islamic laws about loan, and as bitcoin is currency so you can apply it the same as to other currencies. below are the details of Islamic Rules of Loan;

https://www.al-islam.org/a-summary-of-rulings-makarim-shirazi/rules-loans-qardh

http://www.islamic-laws.com/debtloanrules.htm

None of them mention collateral but thanks, I learned something new Lips sealed

Quote from: steven0021 on July 19, 2016, 02:05:40 PM

Not an expert on Islam law here (I'm not even Islam), but looks like there's a good explanation here complete with references: https://islamqa.info/en/140078

It pretty much said that it is indeed haram.
But. I think you can get a more clear answer from your local imam.

The website you mentioned is the first result on google when I research about collateral, it says that if I benefit from collateral it is counted as haram but what if i just get my money back by selling that collateral and send back the rest to the user who took the loan?

bestluck

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For you I have found some Islamic laws about loan, and as bitcoin is currency so you can apply it the same as to other currencies. below are the details of Islamic Rules of Loan;

https://www.al-islam.org/a-summary-of-rulings-makarim-shirazi/rules-loans-qardh

http://www.islamic-laws.com/debtloanrules.htm

steven0021

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Experientia docet

Not an expert on Islam law here (I'm not even Islam), but looks like there's a good explanation here complete with references: https://islamqa.info/en/140078

It pretty much said that it is indeed haram.
But. I think you can get a more clear answer from your local imam.

traderbit

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Guys I'm worried when lending bitcoin to users.
- I know that taking interest on loans is haram but are there any other situation when giving a loan is haram?
- What if I require a collateral? Is it haram or not?
- If the user defaults am I able to spend the collateral?

I was scammed for $75 in the near past and was very pissed of that I didn't request a valid collateral.

Mods: If i posted in a wrong board please move it to the correct one.

Topic: When lending bitcoin is haram?Is haram taking the collateral when giving a loan? (Read 773 times)