Question

Assalaamu Alaykum Ustadth,

Thank you for reading this, I understand that you are very busy and I do not want to take much of your time!

I’ve been meaning to ask these questions which pertain to business for a while.
I have been offered equity and a full-time role as a software engineer in a startup and I wanted to make sure that the mobile application I will be building and the job role are halal to avoid making shubha/haraam money.

Context: My main role (as a software engineer in this team) is to create the main logical component that connects the user interface to the blockchain ( a finance network) which allows and facilitates users to do their transactions, create their accounts, and use the application.

What does the app do?

The mobile application is a platform where users can sign up and create their own token. A token represents a unit of value that is tied to the user’s identity. Different users can buy and sell any tokens on the platform. Tokens change in price according to demand, similar to the way stocks behave. Simply meaning the more a token is bought, the higher its price goes up and the more it is sold the lower its price goes.

When users create their own token, they are also allowed to display their profile picture on the token, create polls containing questions and/or images. Other users who bought that token are allowed to give a vote on those polls. Note that these users can be women and these women can display their profile pictures (which can include their bodies). These users can also be celebrities (famous singers, football players, etc..).
Note: A token is a cryptocurrency (similar to bitcoin)

How does the app work:
How are profits made (How do transactions work):
For every transaction (buy/sell):
0.038% goes to the owners of the company
1.52% goes to the token creator
The remaining 98.1% goes to the smart contract. The smart contract essentially represents a bank account that holds the value of the token (digitally not physically).

Regulation:

Only certain companies with a “Money Transmitter License” can convert from fiat to cryptocurrencies in the app
All of these companies are regulated
All of the cryptocurrencies in the app are traded in through a main cryptocurrency called USDC which is also heavily regulated.
All of the users are identified by their credit card + phone number + address or even their passport in some cases

How do the tokens increase in price?
The more demand (more buys than sells), the more the price grows, because it means more people value that token and want it, so it grows to a higher value

if anymore information is required in order to form a fatwa we will be happy to provide it!

JazaakAllahu Khayran Ustadth

Answer

Based on the information provided in the question the role that you will be carrying out does not contravene shar’i principles. For this reason, it would be permissible for you to continue in this role. If the customers choose to use the app in a manner which conflicts with shari’ah then that responsibility will be on them. From what we have understood you will just be working on the platform itself which can also be used in lawful ways.

Answered by:
Ifta Research Fellow

Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel