Sheikh Shawki Allam: Islam Forbids Bitcoin

Apparently, some new indications on the position on bitcoin have come from Islam. Several countries around the world have taken different positions regarding the cryptocurrency market and whether they will regulate it or not. Well, when it comes to Islam, bitcoin may not be seen with good eyes.

Local media reported that a top Iman in Egypt has stated that bitcoin trading should actually be banned as the digital currency is "forbidden" by Islam. The claims were made by Sheikh Shawki Allam, according to local media outlet Ahram. According to Allam, cryptocurrency trading has to be forbidden as it actually is producing harm to people and institutions.

According to him, trading in bitcoin is "forbidden in Sharia, as it causes harm to individuals, groups and institutions." According to Allam, the digital currency is associate to risks of criminal activity, including fraud. He also claimed that bitcoin trading is similar to gambling, which of course, is forbidden by Islam.

Allam: bitcoin trading is similar to gambling

Allam claimed that both gambling and bitcoin trading can lead to similar effects, which include financial ruin for people. One of the main reasons why Allam believes that bitcoin is so risky is linked to the fact that it lacks regulation by centralized authorities. He claimed that bitcoin could also end up affecting Egypt's own currency, given that the digital currency is linked to high potential to obtain profit.

Bitcoin used for criminal activity?

Previously, some advisers in Egypt have actually said that bitcoin is directly used to fund terrorism. Furthermore, several warnings on the risks of bitcoin came from Egypt. A government body said that the cryptocurrency's lack of official regulation makes it easy for extremists to use it for funding. Overall, Egyptian authorities have been very critical of bitcoin and the cryptocurrency market.

However, it is important to mention that at this point there is no official ban in Egypt on bitcoin trading, although several countries have taken such a decision. Allam called on Egypt's authorities to issue an official ban.