Are Cryptocurrencies Haram? Many of those, who intend to trade on the digital market, ask themselves this question. However, there is no specific or exact answer for this. While some officials believe the cryptocurrency trading should be forbidden under the Islamic law, others share a different point of view.
3 January, AtoZForex – The highest Islamic religious leader of Egypt now is contemplating over the legitimacy of the cryptocurrency trading. Shawki Allam is the current Grand Mufti of Egypt. He has stated that cryptocurrency trading is prohibited under the Islamic religious law.
Are Cryptocurrencies Haram? Egypt Grand Mufti Says Yes
Mr. Allam has referred to the high risks associated with the cryptocurrency trading. He has expressed his remarks in the form of fatwa, which is an interpretation of Islamic religious law. Fatwa is not legally binding, however, it is considered to be a high-level legal opinion. The comments from Shawki Allam make him one of the first highest-ranking religious leaders in the Muslim world to prohibit cryptocurrency trading under the religious law.
According to the official report from the local media, Shawki Allam has also mentioned Bitcoin’s anonymity along with its high volatility. He has stated that the anonymity can undermine the legal system by allowing for tax evasion, fraudulent activities and terrorist financing.
Egypt is still at a beginning stage of the cryptocurrency market development. Nevertheless, the comments from Mr. Allam are very similar to those from the global regulatory bodies. Previously, the Central Bank of Egypt has declined the fact that it would allow for the Bitcoin transactions across the banking sector in Egypt. The representatives of the bank stated:
"For stability of the Egyptian banking system, the banks deal with the official currencies only, and never deal with any virtual currencies."
While Bitcoin is gaining the popularity day by day, many speculate whether cryptocurrency market is Halal or Haram. As we discussed in our previous article on this topic, as long as religious bodies keep on having political agendas, it is likely that we will keep on hearing about Bitcoin halal and haram discussions.
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