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Is buying NFTs Halal or Haram?

I recently came upon some NFTs that caught my eye. I don’t have any interest in trading or gambling with it. Can it be considered as those Pokémon cards that we used in our childhood. I wanted to know more about its trade through the shariah law. Can someone from the community, tell me more about it.

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My understanding of NFTs (which is probably quite limited) is that it is more similar to an asset or commodity than it is a stock. So I kind of think of it like a car or something. It’ll probably appreciate/depreciate in value over time. So the question becomes the nature of the item the NFT represents, and whether you are comfortable buying and selling things of that nature. Having said that, I don’t think there’s a purification factor to any earnings you can make from selling an NFT (this might actually go under assets/possessed cash when doing Zakat calculations). But I would love to know what you think, and how others respond.

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I put NFT into the exotic ‘assets’ category. Absolutely 0 interest in them. I am not sure why there is so much fascination with all these new age things when the boring high quality companies can be invested into for wealth preservation / growth.

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Have a read hope it answers your question

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Totally agree investing in stocks is the most fruitful way, in addition it serves the society
But if you read the history there were times when people used to tie the worth of things to some big or precious stones then gold and then came paper money which governments inflate mercilessly and we are left with loss
imo value of things have been quite arbitrary regarding this it maybe worth it to get into the hype

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Oh nice! Thanks for sharing this Abdullah

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So i read this article by Joe Bradford it says shares, real estate or art bought from illiquid market are exempted from zakat
Considering nfts as art but for nfts we know the floor price i-e minimum value the last nft of a particular class was sold for
So we know the floor price do nfts still considered illiquid asset and we need to pay zakat?

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Jazak’Allah for sharing.

Is it permitted to buy art in islam or gaming skins, lands or other characters and if it is what would be the zakat over it

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@Sugon_Desu @M.Abdullah We featured both of your questions in our new Ask Zoya series! Check out the video below to hear Sheikh @Joe Bradford explain the shariah permissibility of investing in NFTs and whether or not you have to pay zakat. :smiley:

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Great team Zoya and Shaykh @Joe for clarifying really needed the input

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NFTs are going to be huge to specific industries…they solve so many real-life problems.

For certain industries, they are going to redefine the business model and create disintermediation opportunities.

Can someone share the hadith (and if applicable how it was extrapolated) supporting thie conclusion that zakkat need not be paid on:

“D- Illiquid wealth: assets that you purchase for their potential increase in value but cannot be reliably valuated until the time of sale. things like art that you buy for investment or shares in a startup or real estate in an illiquid Market.”