Are there any islamic finance experts who consider cryptocurrency trading haram, can I have some names and sources please?
Question from user
Islamic Finance Experts’ Views on Cryptocurrency Trading:
Islamic finance experts hold diverse opinions regarding the permissibility of cryptocurrency trading within the framework of Shariah law. Here are some key insights:
Scholars Considering Cryptocurrency Trading Haram:
- Mufti Shawki Allam: The Grand Mufti of Egypt, views trading in cryptocurrency as haram due to its lack of approval by legitimate bodies, potential for contraband trade, money laundering, and resemblance to gambling[3].
- Directorate of Religious Affairs in Turkey: Similarly, this authority believes that cryptocurrency trading is inappropriate due to its speculative nature, use for illegal deeds, and lack of state auditing and supervision[3].
- Mufti Taqi Usmani: A former judge of the supreme court of Pakistan, argues against cryptocurrency trading being halal, stating that it goes against the philosophy of Islamic economics as it lacks intrinsic value and is used for gambling or speculations[3].
Scholars Considering Cryptocurrency Trading Halal:
- Proponents: Some scholars argue that cryptocurrencies can be halal as they are real digital assets that can be owned, possessed, stored, and traded, meeting the criteria for permissible transactions in Islam[5].
- Mal in Crypto Transactions: Supporters highlight the absence of interest (riba) in cryptocurrencies and their potential for high returns on investments as factors contributing to their halal status[2].
- Decentralization and Security: Advocates emphasize the secure transactions facilitated by blockchain technology and the potential benefits of financial inclusion and reduced corruption through decentralized cryptocurrencies[4].
Ongoing Debate:
- Diverse Interpretations: The Islamic finance industry encompasses various schools of jurisprudence with differing interpretations of Shariah law, leading to ongoing debates about the permissibility of cryptocurrency trading within Islamic finance principles[4].
- Regulatory Concerns: Scholars raise concerns about the speculative nature, lack of intrinsic value, and potential for illegal activities associated with cryptocurrencies, influencing their views on whether crypto trading aligns with Islamic finance principles[4][5].
In conclusion, while some Islamic finance experts consider cryptocurrency trading haram due to concerns about speculation, lack of intrinsic value, and potential for illegal activities, others view it as halal based on factors like ownership of digital assets and absence of interest. You can read more about crytocurrency being halal or haram here.
The ongoing discourse reflects the complexities surrounding the integration of digital currencies into Islamic finance frameworks and highlights the importance of seeking guidance from knowledgeable sources when navigating cryptocurrency investments within an Islamic context.
Citations: [1] https://tradersunion.com/interesting-articles/is-cryptocurrency-halal/ [2] https://blockgeeks.com/guides/cryptocurrency-halal-or-haram/ [3] https://www.sarwa.co/blog/is-cryptocurrency-halal [4] https://www.thearmchairtrader.com/trading-crypto-halal-or-haram/ [5] https://aims.education/is-bitcoin-halal-or-bitcoin-haram/
