The Grand Mufti of Egypt Shawki Allam is reported to have issued the so-called fatwa (which means a ban on something) against cryptocurrencies. This means that Muslims can no longer trade or invest in Bitcoin or other cryptocurrencies. To be more specific, the Mufti thinks that trading cryptocurrencies is almost the same as gambling. Yet, gabling is strictly forbidden in Islam.
This decision to ban cryptocurrencies was made shortly after the Grand Mufti consulted with a group of experts. As we have already mentioned, the Grand Mufti thinks there is little to no difference between trading cryptocurrencies and gambling for money. Apart from being a risky asset (for example, the price of Bitcoin has been going up and down continuously over the last few years), any cryptocurrency is anonymous, which means it can create some space for being used by criminals (money laundering, contraband trading and so on).
By the way, he is not the first Muslim cleric to criticize Bitcoin and other altcoins that has been getting increasingly popular and growing in value at an unprecedented rate over the last 12 months or so. For instance, last month, Assim Al-Hakeem, who is a high-ranking Muslim cleric form Saudi Arabia, also banned cryptocurrencies for their ambiguity and anonymity, which is why criminals of all kinds low this thing.
The same holds true for Turkey’s Directorate of Religious Affairs, a major Turkish religious authority, that banned Bitcoin for being unregulated and used by criminals.
By the way, Bitcoin showed a strong rally in 2017 by gaining over 1300% in 12 months. Some other cryptocurrencies gained even more over the same reporting period.
