Back to the list

Egypt's Grand Mufti banned bitcoin trading

Bitcoin trading is declared illegal in Egypt by country's supreme religious leader Shawki Allam. Sheikh has issued a fatwa, which says that cryptocurrencies are forbidden by the Sharia.

Fatwa is an interpretation of Islamic law issued by clerics or scholars. Although it has no legal force, it does have a great influence on believers. The fatwa prohibiting bitcoin trading was issued after meetings with economic experts.

According to the Grand Mufti, digital money poses a threat to the country's economy and the national currency. Allam also warned that bitcoin can have a "negative effect on its dealers' legal safety, possibly due to failure to publicly disclose such operations", as reported by Egyptian daily Ahram. Country’s leading cleric also compared cryptocurrencies trading with gambling, which is forbidden in Islam.

In Egypt, there is no legislative regulation for cryptocurrencies. The authorities of the Middle Eastern country did not prohibit the use of digital money, but at the same time did not take any measures for their implementation in the financial sphere.

In August last year, it was reported in Egypt about the launch of Bitcoin Egypt, the country's first crypto exchange. The Central Bank immediately responded that cryptocurrencies would not be accepted in the banking sector and the regulator does not intend to issue a law that would allow bitcoin trading.

Back to the list