The largest mufti Shawki Allam of Egypt has called the trade of Bitcoin "illegal" "according to sharia law, today reported Ahram online publication. In the fatwa released Monday, Allam wrote that Bitcoin is not an "acceptable exchange interface" and that it is therefore illegal to trade. The cleric also cited the potential of Bitcoin for money laundering and pointed out that because it is not subject to any government control, Bitcoin could potentially undermine the Egyptian economy.

Allam added that Bitcoin negatively affects the legal security of the dealers. "And that:

" Bitcoin is forbidden in sharia law because it harms individuals, groups and institutions. "

One of the great mufti's advisers tells the BBC that Bitcoin is" used directly to finance terrorists. "The Egyptian government is also not a fan of cryptocurrency, having qualified Bitcoin of "a form of deception that falls under legal responsibility."

Halal or not?

Back In February 2017, Cointelegraph spoke to several experts about the status of Bitcoin under Sharia law and Matthew Martin of Blossom Finance explained his belief that Bitcoin is halal, writing:

In fact, Bitcoin goes beyond what is offered by more conventional closed banking networks. conventional users who use private records where there is no guarantee that the originator actually owns the underlying assets, Bitcoin guarantees with mathematical certainty that the initiator of the transfer owns the underlying assets. Conventional banks operate using the principle of fractional reserve, which is forbidden in Islam. "

Matthews agreed that Bitcoin would not be considered as money according to Islamic law: