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Is Gambling and Betting with Cryptocurrency Haram? How to Make Haram Money Halal

Sharia Law on Crypto Betting and Gambling

In today’s fast-evolving financial world, the question arises for many: is gambling or betting with cryptocurrency haram (forbidden)? To help you understand the Islamic perspective, let’s dive into what Islam says about gambling and betting, no matter the currency, and how we can purify any haram wealth we may have gained.

Is Gambling with Cryptocurrency Different from Traditional Gambling in Islam?

In Islam, any form of gambling, whether it’s with cash, cryptocurrency, or other assets, is considered haram. Gambling and betting, known as “Maisir” in Arabic, have long been deemed Haram (forbidden) in Islam. This prohibition is rooted in Shariah, as gambling relies on chance, not on fair trade or productive work. Engaging in these activities, regardless of the currency, leads to uncertainty (gharar), promotes dependency on luck rather than skill, and carries a risk of addiction—all elements that go against Islamic principles. This holds for all Muslims, regardless of the type of asset involved, including cryptocurrency.

What Should You Do If You’ve Earned Money Through Gambling or Betting?

If you find yourself with money earned through gambling or betting and want to make it halal, there are steps you can take to cleanse this wealth and seek Allah’s forgiveness. By making sincere efforts to remove haram income from our lives, we aim to align our intentions with the teachings of Islam. Here’s how:

1. Repent to Allah (SWT) with a Sincere Heart

The first step toward purification is sincere Tawbah(repentance). Repent to Allah (SWT) for having engaged in haram activities, and resolve never to return to these actions again. When we turn to Allah with genuine regret, He is always ready to forgive, as long as we intend to stay away from haram means of earning in the future.

2. Dispose of Haram Money in Charity

The money earned through gambling or betting should not be used for personal gain, as it does not carry barakah (blessing). Instead, give this money to charitable causes or the poor to cleanse your wealth. Remember, this donation is not considered zakat since zakat requires pure income. Donating to causes that benefit society, such as feeding the needy, building community resources, or supporting Islamic institutions, is a way to rid yourself of haram funds and replace them with halal earnings.

Can’t Separate the Haram Money from Your Wealth? Try These Solutions

If gambling earnings are mixed with your entire wealth and it’s hard to separate them, there are three ways to approach this situation:

Option 1: Estimate and Donate the Same Amount as Sadaqah

If you have a rough idea of how much money was gained from gambling or betting, then calculate this amount and give it in sadaqah. This charity should be directed toward people in need or charitable projects, without expecting any personal gain or reward. Here you can pay Sadaqah in various cryptocurrencies such as Bitcoin, Ethereum and more…

Option 2: Give Khums if Haram Earnings Are Minor

If you’re uncertain about the exact amount but know that it’s a small part of your wealth, you can purify it by giving khums. This involves giving one-fifth of your wealth to charity, which is a portion that, in Islamic tradition, serves to purify earnings. Here you can pay Khums in various cryptocurrencies such as Bitcoin, Ethereum and more…

Option 3: Donate a Larger Amount if Haram Earnings Are Substantial

If a large part of your wealth is believed to contain haram earnings from gambling or betting, consider giving more than khums in charity. The amount depends on what brings you peace and what you feel is sufficient to purify your wealth. Some Muslims, in pursuit of full peace of mind, donate a major portion or even all of their wealth if they feel it’s heavily mixed with haram income. Allah knows our intentions best, and in striving for a pure heart, we seek His acceptance of our actions.

Seeking Allah’s Satisfaction and Inner Peace

In our journey as Muslims, we aim to preserve our religion and keep our earnings and hearts pure. By repenting sincerely, donating haram funds to charitable causes, and taking actions that align with Islamic principles, we show our dedication to living in a way that pleases Allah.

Remember, Allah sees every action and knows our intentions. He understands when we strive to cleanse our lives and make our wealth pure, and He rewards the effort to keep haram out of our lives. May Allah grant us success in our intentions, accept our efforts, and guide us on the path of purity, honesty, and peace.

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Purification of Haram Money: 4 Islamic methods

Is Your Money Halal? A Guide to Purification in Islam

Have you ever wondered if the money you possess is truly halal (permissible) according to Islamic principles? Perhaps you’ve received a windfall, or maybe you’re unsure about a past source of income. Worry not, for Islam offers a path towards purifying your wealth and achieving peace of mind.

In this guide, we at Our Islamic Charity will explore the concept of haram (forbidden) money and how to transform it into halal wealth. Together, we’ll delve into the Islamic perspective on financial matters and discover the steps you can take to cleanse your possessions.

Understanding Haram Money

In Islam, wealth obtained through unlawful means is considered haram. This includes, but is not limited to, money earned through:

Interest (riba)
Gambling
Theft
Bribery
Usury
Unethical Businesses

“And do not consume one another’s wealth unjustly or send it [in bribery] to the rulers in order that [they might aid] you [to] consume a portion of the wealth of the people in sin, while you know [it is unlawful].” (Quran 2:188).

How Do I Remove Haram (Illegal) Money from My Property?

As Muslims, we are strictly prohibited from acquiring, possessing, or spending haram (forbidden) money. This principle is deeply rooted in Islamic teachings found in the Quran, Sunnah, and Islamic jurisprudence. If you have acquired haram money, it is essential to remove it from your property. The most recommended way to do this is to donate the entire amount to a reputable Islamic charity. This ensures that the money is used for the benefit of the Muslim community and the needy, mitigating any potential harm.

Remember that if you have haram money, you cannot spend it in any way and you should only give it to a third party such as Islamic charities.

Seeking Forgiveness and Purification

If you find yourself in possession of haram money, the first step is to seek forgiveness from Allah (SWT). Repentance is a cornerstone of faith, and Allah is ever-merciful towards those who sincerely seek His pardon.

Once you’ve repented, the next step is to purify your wealth. The specific method for purification depends on the circumstances surrounding the haram money. Here, we’ll explore some common scenarios:

1. Knowing the Rightful Owner

If you know the rightful owner of the haram money, the most important step is to return it to them. This act of restitution demonstrates your sincere remorse and commitment to righteousness.

2. Unknown Owner, Known Amount

If you are unable to locate the rightful owner, but you can estimate the amount of haram money in your possession, you can purify it by donating an equivalent amount to charity (sadaqah). Focus your charitable giving on causes that align with the potential owner’s needs, if possible.

3. Mixed Halal and Haram (Unknown Amount)

Sometimes, haram money may become mixed with halal earnings, making it difficult to distinguish the two. In this situation, if you cannot determine the amount of haram money, scholars recommend paying Khums (one-fifth of your total wealth) to charity. This act signifies your good intention to cleanse your wealth and ensures a significant portion of the haram element is removed.

4. Dominant Haram Money

In rare cases, the haram element might be so significant that it overshadows the halal portion. Here, some scholars recommend donating a larger sum than Khums to charity. Ultimately, the amount you donate depends on your own sense of inner peace and your desire to ensure complete purification. In these complex situations, consulting with a qualified Islamic scholar is highly recommended. In this case, depending on the inner peace and heart intention of a Muslim who wants to be sure that the property is not haram and he is not committing a sin, he can continue to pay all the money to the halal and haram to charity. For this method, you can do your own calculations and make a direct payment through link Wallet to Wallet.

Remember, We’re Here to Help

At Our Islamic Charity, we understand that navigating financial matters can be challenging. If you have questions or concerns about the halal status of your money, please don’t hesitate to reach out. Our team of dedicated staff is available to offer guidance and support on your journey towards financial purity.

Together, we can walk the path towards a life blessed with both material well-being and spiritual fulfillment.

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Haram Money in Islam pay to islamic charity

What is Haram Money in Islam?

Is Your Money Halal? A Guide to Ethical Finances in Islam

As Muslims, we strive to live our lives according to the principles of Islam, and that extends to our finances. Earning and managing money ethically is an important part of fulfilling our faith. But with the complexities of the modern world, it can be easy to unintentionally acquire income that isn’t considered halal. At Our Islamic Charity, we’re here to guide you through the world of halal finances and empower you to make informed financial decisions.

Understanding Haram Money

Haram money, sometimes referred to as riba, refers to wealth acquired through unjust means. This can encompass a variety of activities that go against Islamic principles, often characterized by exploitation, deception, or a violation of ethical practices.

Here are some of the most common ways money becomes haram:

Usury(Riba): Charging interest on loans is a major form of haram money. Islam promotes fairness and discourages practices that enrich the wealthy at the expense of the less fortunate. Be careful that this money is based on lending and not investment interest. Basically, this type of haram money is the money caused by usury(Riba).
Uncertainty and Risk: Engaging in transactions with excessive uncertainty or risk, such as gambling or speculative trading, is considered haram. Islam emphasizes responsible financial decisions and discourages unnecessary risk-taking.
Unethical Businesses: Profits derived from businesses that deal in forbidden products or services, like alcohol or pork, are considered haram. Similarly, supporting businesses that engage in unethical practices like fraud or corruption falls under this category.

Avoiding Haram Money in Daily Life

Being mindful of where your income comes from is an essential part of maintaining financial harmony with your faith. Here are some practical steps you can take to ensure your money is halal:

Choose Your Employer Wisely: Research the practices of companies you’re considering working for. Avoid those involved in activities that contradict Islamic principles.
Review Your Investments: Carefully assess your investment portfolio. Divest from companies that engage in haram activities.
Scrutinize Your Banking: Traditional banks often charge interest, making them a potential source of haram income. Explore alternative Islamic banking options that adhere to Sharia principles. One of the best alternative structures for traditional banks is crypto and cryptocurrencies. These new structures are based on interest-free loans, and you can find many healthy and halal projects among blockchain and crypto projects. Many of these halal projects are also active in the field of DeFi investment.
Be Mindful of Side Hustles: If you have a side hustle, ensure your activities align with Islamic ethics. Avoid ventures that involve gambling, selling forbidden goods, or unethical practices.

Remember, even unintentional mistakes can lead to acquiring haram money. The best approach is to be proactive and educate yourself about halal financial practices.

What if You Have Haram Money?

If you discover you have unknowingly acquired haram money, there’s still a path towards rectification. Here are the steps you can take:

Repentance: Seek sincere forgiveness from Allah for your unintentional actions.
Returning the Money: If possible, try to return the haram money to its rightful owner.
Charitable Giving: If returning the money is not an option, donate an equivalent amount to a reputable Islamic charity like Our Islamic Charity (Quick solution: You can pay the equivalent amount of Haram(forbidden) money as Sadaqah or read the related article carefully.). This act of charity helps those in need and purifies your own financial situation. There are different conditions for paying haram money, so be careful and read this article from here carefully and then proceed to pay.
Purification: Consider acts of additional worship or fasting to further demonstrate your sincere repentance.

Our Islamic Charity: Your Partner in Halal Finances

At Our Islamic Charity, we understand the importance of financial guidance within the framework of Islam. We offer educational resources and support to help you navigate the complexities of halal finances. Whether you’re seeking information on ethical investment options, want to learn more about Islamic banking, or simply need a listening ear, we’re here for you.

Let’s work together to build a financially secure and ethically sound future, guided by the principles of our faith.

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Zakat and Khums Calculation Date for Muslims, Including Crypto Zakat Guide

Choosing Your Zakat and Khums Calculation Date: A Guide for Fulfilling Your Obligations

As Muslims, fulfilling our financial obligations like zakat and khums is a cornerstone of our faith. It allows us to purify our wealth, share blessings with those in need, and contribute to a more just society. But sometimes, a question arises – when exactly should we calculate and pay our zakat and khums?

While there’s no specific date mandated in the Quran or Sunnah, establishing a consistent date for yourself brings several benefits:

Clarity and Organization: Having a set date streamlines the process, ensuring you don’t overlook this important act.
Timely Distribution: Calculating zakat and khums on a designated date allows for prompt distribution to those who deserve it most.
Peace of Mind: Knowing you’ve fulfilled your obligations fosters a sense of peace and spiritual well-being.

how do you choose your calculation date?

Here are some popular options:

The Beginning of the Hijri Year: Many Muslims opt for the first day of Muharram, marking the beginning of the Islamic lunar calendar. This aligns with the concept of a fresh start and new beginnings.
Significant Dates: Some choose dates with personal or religious significance, like the start of Ramadan, Dhul-Hijjah before Hajj, or the Prophet’s birthday. These serve as easy reminders for annual calculations.
Personal Anniversaries: Birthdays, wedding anniversaries, or other personal milestones can also be used as calculation dates. This ensures you remember your zakat and khums obligations annually.

The key is to choose a date you’ll remember easily and consistently.

Calculating Crypto Zakat: A Modern Approach

With the growing popularity of cryptocurrency, a question arises: how does zakat apply to these digital assets? The good news is, zakat principles extend to crypto holdings as well. Since they are considered a form of wealth, 2.5% of your total crypto value that has reached a haul (one lunar year) is subject to zakat. We have created a crypto zakat calculator for crypto donors that is compliant with Islamic law, which you can view here.

Calculating Khums

Khums is an annual obligation specific to Shia Muslims. It applies to all surplus wealth that has reached a haul, including crypto holdings. The calculation involves determining one-fifth (20%) of your net surplus wealth after deducting any personal debts or expenses.

Remember, consulting with a qualified Islamic scholar can provide personalized guidance specific to your circumstances. If you have any questions about calculation or payment, you can ask your questions using “Contact Us”.

Should a Muslim pay both Khums and Zakat?

It depends. To calculate Sharia payments for Sunni and Shia is different. Here’s the breakdown of Khums and Zakat obligations for Sunni and Shia Muslims:

Sunni Muslims: They are obligated to pay Zakat only. Khums is not considered an obligation for Sunni Muslims.
Shia Muslims: They are obligated to pay both Khums and Zakat. However, there’s a slight difference in how Zakat is calculated for Shia Muslims compared to Sunnis.

Muslim Sect	Zakat	Khums
Sunni	Obligated	Not Obligated
Shia	Obligated (calculation might differ slightly)	Obligated

Fulfilling Your Zakat Obligation and Making a Lasting Difference

Choosing a zakat and khums calculation date is a simple yet impactful step. By establishing a consistent practice, you ensure the timely fulfillment of your financial obligations and contribute to a more equitable society. May your generosity and commitment to your faith continue to flourish!

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Why should 100% donation policy and 100% zakat policy be implemented?

Fulfilling Your Zakat and Sadaqah Obligations: Why a 100% Donation Policy Matters

In Islam, charity is more than just good deeds; it’s a fundamental pillar of our faith. We are called to share our blessings with those less fortunate, purifying our wealth and fostering a more just society. But how can we ensure our charitable giving aligns with Islamic principles? This is where the concept of a 100% donation policy comes into play, offering a transparent and accountable approach to managing your Zakat and Sadaqah.

Understanding Zakat and Sadaqah: Fulfilling Your Religious Duty

Zakat, one of the Five Pillars of Islam, is a mandatory form of charity that entails giving a fixed percentage (typically 2.5%) of your eligible wealth to those in need. Sadaqah, on the other hand, is voluntary charity, allowing you to donate any amount you wish. Both Zakat and Sadaqah hold immense significance, promoting social responsibility and fostering compassion within the Muslim community.

However, fulfilling these obligations extends beyond simply giving money away. Islamic jurisprudence outlines specific guidelines regarding who qualifies to receive Zakat and Sadaqah, as well as the permissible uses for these funds. These guidelines ensure that your charitable contributions provide the most benefit to those who truly need them.

Who Receives Zakat and Sadaqah?

The categories of those eligible to receive Zakat are clearly defined in the Quran and Hadith. These include the poor and needy, those in debt, travelers stranded without provisions, those fighting in the سبيل الله ( سبيل الله – Cause of Allah), those converting to Islam, and those whose hearts need to be reconciled (to Islam).

Sadaqah, being voluntary, offers more flexibility in terms of recipients. You can donate to any worthy cause that aligns with your charitable intentions, be it supporting educational initiatives, providing food and shelter for the homeless, or aiding victims of natural disasters.

Ensuring Transparency and Accountability: The Importance of a 100% Donation Policy

At our Islamic Charity Institution, we understand the importance of upholding the highest ethical standards when it comes to managing your Zakat and Sadaqah contributions. That’s why we have implemented a strict 100% donation policy. This means that every single Satoshi you donate reaches those in need, with no deductions taken for administrative or operational costs.

We are Muslims and we know that in Islam it is forbidden(Haram – حرام) to spend from zakat, sadaqah(charity) and donation other than the things that are mentioned in Islamic orders and Islamic jurisprudence.

We recognize the concerns some may have regarding the management of Zakat and Sadaqah funds. The question arises: how can administrative costs be covered without taking from these donations? Here, we want to assure you that we have established sustainable financial practices to ensure the smooth operation of our charity. These practices may include fundraising initiatives, endowment funds, and income-generating activities that adhere to Islamic principles.

By adopting a 100% donation policy, we not only fulfill the religious obligation of Zakat and Sadaqah in its purest form, but also build trust and transparency with our donors. You can be confident that your charitable contributions are being used exactly as intended, with maximum impact on those who need them most. You can go to the projects section and read all kinds of active projects of our Islamic charity organization, or you can go to the reports section and read the reports of crypto activities and spending.

Navigating the Modern Landscape: Crypto Donations and Fulfilling Your Obligations

The world of finance is constantly evolving, and the emergence of cryptocurrency has presented a new avenue for charitable giving. Our Islamic Charity Institution embraces this innovation, allowing you to fulfill your Zakat and Sadaqah obligations using your crypto holdings.

However, it’s important to acknowledge the unique considerations surrounding crypto donations. Since the concept of cryptocurrency is relatively new, Islamic scholars are actively engaged in discourse to determine the most appropriate way to handle Zakat and Sadaqah in this context. We have followed these instructions and designed a crypto zakat calculator for you and you can calculate your zakat based on both crypto and fiat from here.

Understanding the Permissible Uses of Crypto Zakat and Sadaqah

While the specific regulations for crypto Zakat and Sadaqah are still under development, some general principles can be applied based on existing Islamic jurisprudence. The core principle remains the same: your crypto donations must be used for the benefit of those who qualify under the established categories for Zakat and Sadaqah recipients.

Here at our Islamic Charity Institution, we take a cautious yet progressive approach. We strive to utilize cutting-edge technology while remaining firmly grounded in Islamic principles. When you donate cryptocurrency to us, we make every effort to convert it into fiat currency (traditional money) to be used for approved charitable causes. The use of fiat is much more common in less developed countries and we will convert your donated crypto into fiat of the same country and spend it on projects to help the needy.

This ensures that your Zakat and Sadaqah reach those in need in a way that is aligned with Islamic teachings. We are constantly monitoring developments in the cryptocurrency landscape and working with Islamic scholars to refine our approach as necessary.

Fulfilling Your Zakat and Sadaqah Obligations with Confidence

By choosing a charity that adheres to a 100% donation policy and embraces new forms of giving like crypto donations, you can be confident that your charitable contributions are making a real difference in the lives of those who need it most. You are fulfilling your religious obligations with transparency, accountability, and a commitment to following Islamic principles.

Our Islamic Charity Institution is here to partner with you on your journey of charitable giving. We offer a secure platform for donating Zakat and Sadaqah, be it through traditional methods or innovative avenues like cryptocurrency. We are dedicated to upholding the highest ethical standards and ensuring your donations reach those who deserve them the most.

Let us join hands in building a more just and compassionate world, one charitable act at a time. Contact us today to learn more about how you can fulfill your Zakat and Sadaqah obligations with confidence.

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