Would you invest in an ICO for a Vegan cake baking company called "Vegan Cakes For All"? Sure why not if it is a good investment?
But if that "Vegan Cakes For All" company was using using cows milk in all of its Sponge Cake products and using pork fat in all of its Carrot Cake products then how can that company called itself "Vegan Cakes For All"? If they want to trade then remove the word "Vegan" and call yourself "Cakes For All" because they are lying and misleading and scamming therefore are thieves.
The moment they drop the word "Vegan" they seize being lying, misleading, scammers and thieves and become a legitimate business.
If the Adab Team cannot check the "purity of the source of the money" that investors send, or if the Adab Team cannot check the "moral standing of each investor" then they can continue to create their exchange but they should remove the word "Shariah".
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ADAB - They call themselves (FICE) First Islamic Crypto Exchange but beware because this is not based on the "Shariah" or Islam.
This is a scam project because they are selling their project and the ICO on the foundations of calling it Shariah compliant when this whole project cannot be Halal or Shariah compliant.
This is not Muslim, Halal or Shariah compliant project. This is a project run by a team, some of who claim to be Muslim and some are not. The "team" are saying this is a Shariah compliant exchange without explaining which interpretation of Islam they follow.
Because they have no vetting system in place to ensure investors buy in to the ICO with Halal/permissible money, it means (by default) they are willing to take investment from the following and more:
pimps
pimps
prostitutes
porn actors
those currently behind bars in prison serving prison sentences
those that sell drugs/narcotics
those that manufacture, test and sell weapons
those that own publications online/print media cursing Muslims and those that have anti-Muslim agenda
those that own, transport or sells alcohol
those that own breweries and manufacture alcohol
Any investment from the above and more means the project cannot be "Shariah" compliant yet these clowns say they are offering a Shariah compliant exchange?
How do you know that they have no vetting system in place ?
Your first premise that it is "money" is incorrect. In a lot of jurisdictions Bitcoin is considered a digital asset and has no legal tender status. It is more of a "financial product".
How Sharia applies to Islamic financial transactions:Sharia prohibits riba, or usury, defined as interest paid on all loans of money.
Investing in businesses involved in activities that are forbidden (haraam).
Charging extra for late payment.
Maisir. This is usually translated as "gambling" but used to mean "speculation" in Islamic finance
Gharar This is usually translated as "uncertainty" or "ambiguity". Bans on both maisir and gharar tend to rule out derivatives, options and futures.
Engaging in transactions lacking "`material finality`. All transactions must be "directly linked to a real underlying economic transaction", which excludes "options and most other derivatives"
In general -Islamic financial institutions do the following:Islamic institutions are to collect zakat (obligatory religious gift)
A board of Shariah experts is to supervise and advise each Islamic bank on the propriety of transactions to "ensure that all activities are in line with Islamic principles".
Risk sharing. symmetrical risk and return on distribution to participants so that no one benefits disproportionately from the transaction.
Customary practice is to take the word of clients that they will not use funds for unIslamic activities and do not deposit funds derived from unIslamic activities.Because compliance with shariah law is crucial in Islamic finance, Islamic banks and banking institutions that offer Islamic banking products and services should establish a Shariah Supervisory Board (SSB) — to advise them on whether or not some proposed transactions or products follows the Sharia, and to ensure that the operations and activities of the banking institutions comply with Shariah principles
According to various Islamic banking organizations some requirements for SSBs include:
- That they be composed of jurists specializing in fiqh al-muamalat i.e. Islamic commercial jurisprudence, (Accounting and Auditing Organization for Islamic Financial Institutions, AAOIFI)
- Their fatwas (legal opinions) and ruling be binding, (AAOIFI)
- That they have at least three members, (Institute of Islamic Banking and Insurance)
- That their members not be employees of the financial institution they supervise;- Be appointed and have their remuneration set by a "general assembly" rather than the institution's board of directors, (International Association of Islamic Banks).
In addition, their duties should include:
- Calculating zakat payable by Islamic financial institutions, (AAOIFI);
- Disposing of non-shariah-compliant income, (AAOIFI);- Advising on the distribution of income among investors and shareholders, (AAOIFI).
Source:
https://en.wikipedia.org/wiki/Islamic_banking_and_financeThe following are commonly utilized practices:
That their SSB members not be employees of the financial institution they supervise. It is the task of the SSB to advise them on whether or not some proposed transactions or products follows the Sharia.
Customary practice is to take the word of clients that they will not use funds for un-Islamic activities and do not deposit funds derived from un-Islamic activities.Just like it is customary practice for restaurants to accept Halal certified meat from their supplier.
Disposing of non-shariah-compliant income.Questionable transactions can be disposed of or returned to the customer that deposited it.
Analysis software like Chainalysis can be used for "Know Your Transaction" checking.
KYC can be used to ensure clients are of good standing.
Other exchanges often offer other services like gambling, futures, options, derivatives, Haram tokens / coins and interest bearing crypto would obviously be excluded,
These directly challenge the assertions that you have made.
While I agree that ensuring that "Haram" transactions are avoided altogether would be a near impossible challenge - the same criticism has been made of the entire Islamic banking system.
Facing a challenging task in my opinion it doesn't make it a fraud. The person who knowingly certifies their deposited Haram funds as Halal commits an ithm. (unlawful deed (sin) committed intentionally)
It would be like a restaurant buying certified Halal meat where the seller certifies that it is Halal but is lying. The restaurant does not knowingly sell Haraam meat.
وليس عليكم جناح فيما أخطأتم به ولكن ما تعمدت قلوبكم وكان الله غفورا رحيما
And there is no blame upon you for that in which you have erred but [only for] what your hearts intended. And ever is Allah Forgiving and Merciful.
Quran 33:5