Darul Iftaa Mahmudiyyah

Creating an asset-based cryptocurrency; Network marketing and multi-level marketing

· 29 Jumada I 1439 AH1 min readFatwa 39450English

Question

I have a question/mashwarah. As there are many new currencies emerging online. I have planed out to start a new cryptocurrency, which can be based upon gold, silver, and general farm or market produces. In order to distribute this currency world wide, i would like to utilize network marketing and multi level marketing. My Question is, are all multi level marketing strategies impermissible or is it certain clause or conditions that may need to be avoided?

Answer

In the Name of Allaah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

You refer to two issues in your query, creating an asset-based cryptocurrency and distributing the proposed cryptocurrency through network marketing and multi-level marketing. As for the first issue, you may send us further details of the proposed plan and we can assist you further. As far as the latter issue is concerned, most multi-level marketing schemes are impermissible[1]; however, you may inform us of your proposed method and we will respond accordingly.

And Allaah Ta’aala Knows Best

Muajul I. Chowdhury

Student, Darul Iftaa

Astoria, New York, USA

Checked and Approved by,
Mufti Ebrahim Desai.

References (Arabic / Urdu sources)

[1] فقه البيوع (2/ 812)

إن كان بيع المنتج مشروطا بأن يدخل المشترى في شبكة التسويق، فهذا البيع فاسد، لاشتراط ما لا بقتضيه العقد.

Answered by
Muajul I. Chowdhury
Checked & approved by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/39450
Fatawa SA: https://fatawa.co.za/fatwa/askimam-39450

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