Fatwā on Cryptocurrency by Grand Muftī Shawky Ibrahim Allam of Egypt’s Dār al-Iftā'

Grand Muftī Shawky Ibrahim Allam of Egypt's Dār al-Iftā' states that all uses of cryptocurrencies, including trading, buying, selling, leasing, are religiously prohibited (ḥarām) because of their negative effects on the economy, disruption of the market equilibrium and the concept of work, and the lack of required legal protections and financial oversight for traders. The Grand Muftī also concludes that cryptocurrencies infringe on the rights of those in authority, dispossessing them of their special prerogatives in this domain, and may give rise to damages from uncertainty, ignorance, and fraud in novel banking processes, standards, and values. For him, this conclusion finds support in the general statement of the Prophet Muḥammad that "He who deceives us is not of us.” Given the high risks that cryptocurrencies pose to individuals and to government, he thus concludes that there is further support for their prohibition with reference to the Islamic legal canon of “no harm”; “lā ḍarar wa-lā ḍirār.” He came to his decision by reference to economists and other related experts.

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