In a recent announcement the Grand Mufti of Egypt, Sheikh Shawki Allam, suggested he would be in favor of a ban on cryptocurrency trading. In referring to Sharia law, the moderate Sunni leader cited its capacity to fund terrorist activity and lack of formal backing as reasons for his endorsement.
Islamic Finance and Sharia Law
The western principles of finance do not necessarily apply to Islamic states and the strict purveyors of the religion’s considerations. A number of different seemingly contradictory principles are first debated by a massive group, both off- and online, of Islamic scholars in order to determine the legitimacy of a currency. For instance, the interest earned on loans is handled with great care as it would technically be impermissible to earn money from money.
The same is nonetheless true with cryptocurrencies, especially with the massive valuation that bitcoin has experienced in 2017 alone. Thus, to gather all the great minds, there was even a conference on this exact subject February 2016.