Purchasing virtual plots using Sandbox in the metaverse
Question:-
1. I would like to know if it is necessary to have a tangible item for a transaction be valid in Shariah.
2. Is it permissible to buy a website, if yes, then why?
3. Is it permissible to buy virtual plots of land using Sandbox in the metaverse?
Answer:-
1. Yes, the existence of a tangible item is necessary for the validity of a sale according to the Ahnaaf.
2. There are two issues here; one is, where a person who is an expert in building and developing websites, is contracted by you to develop a website for you or your company, and a fee is mutually agreed upon between the two of you. In this case, the fee that is paid is in lieu of his labour and service. This is permissible.
The second scenario is what is referred to in the query, that a website with a specific domain name (abc.com or abc.co.za etc.) is well-established and has gained popularity amongst people who access that website. Now, because the website with that domain name has become so popular, it is in great demand. So, the owner decides to ‘sell’ his website, meaning that he is selling the domain name. This is the scenario that is being queried in this case. This won’t be permissible, as the person, by selling the domain name, is in effect, selling the RIGHT to use his domain name. So, this is the sale of rights, similar to selling copyrights, which, according to our Darul Ifta, is impermissible. In conclusion, as this is a sale of something intangible (“selling” the right of using a domain name) it will not be permissible.
However, some of the current day Muftis such as Mufti Taqi Uthmani Saheb Daamat Barakaathum, have permitted the sale or purchase of a website even though it is not a tangible item. [Fataawa Uthmaani Pg.249 Vol.3]
According to Jadeed Fiqhi Masaa’il, rights (such as copyrights, purchase and sale of websites etc.) that are not discussed in the Quraan and Hadith but some monetary benefit is attached to it, and taking a fee in lieu of such a right has become the norm in society which does not clash with the wisdom and benefit of Shariah, then taking an exchange (money) in lieu of such a right is permitted in Shariah. However, the matter should be referred to the Darul Iftas and Muftis to determine which rights may be sold in lieu of an exchange and which rights cannot be sold. (This means that this is not a general rule for all to act upon but is left to the discretion of the Muftis.) [Re:- Jadeed Fiqhi Masa’il Pg.115 Vol.4]
The above ruling provides some concession for the sale of a website although a website is not a tangible item, as one is able to benefit from a website, and the sale of websites has become the norm in society.
However, it will be safer and more cautious to adopt the initial view of the Madhab (which is still the view of many current day Muftis and our view as well) that the sale of rights is not permitted. In other words, for the validity of a sale, the item needs to be tangible.
3. Sandbox in the metaverse is nothing more than a game that is now selling virtual plots with no reality behind it. Since, this is mere entertainment and nothing more, the virtual plot that is being sold / purchased cannot even be categorized as a right. Unfortunately, when people stop obeying Allah Ta’ala and His Rasul Salallahu Alaihi Wasallam and following the Shariah, then one stoops to such a low level that people are prepared to purchase a virtual plot in a game which bears absolutely no benefit whatsoever. This is just another scheme to extort money out of simple-minded people and deceive them.
Some of the current day Muftis (that approve of the sale of copyrights) have stated that for the sale of a right to be valid, it must be the norm for people to buy and sell the said commodity. Purchasing and selling a virtual plot on sandbox in the metaverse is definitely not the norm amongst the masses. Instead it is a ‘game of entertainment’ played by, perhaps, some wealthy people. Secondly, they state that one must be able to benefit from the sale of the right, whereas this is also not applicable, as it begs the question that how does one benefit from a virtual plot? A plot is purchased to build a house or property, so that one is able to live in it or put up a building and acquire rental from it. None of these are possible from a virtual plot which indicates that this is mere entertainment.
In conclusion, we do not approve of such a transaction.