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Tag: Bitcoin

  • (Russia) ‘Halal’ Bitcoin May Be Coming To A Muslim Community Near You

    (Russia) ‘Halal’ Bitcoin May Be Coming To A Muslim Community Near You

    Cryptocurrency as a tool of Islamic banking is being discussed by the Muslim community and could be created within the next two or three years, according to the adviser on Islamic economics and finance of the Russia’s Muftis Council Madina Kalimullina.

    She told TASS that based on the cryptocurrency characteristics, the coin can be halal [permissible – Ed.]. “Sharia standards do not cover this issue yet, but in the perspective of two or three years they can be developed,” Kalimullina said after a conference in Kazan.

    “This topic is now very popular in the Russian Islamic community, particularly in the Caucasus, it is constantly discussed at the meetings of Islamic economists,” she added.

    There’s already a so-called ‘meet-coin’ in Kazan for settlements in the livestock business.

    Kalimullina said bitcoin exchanges have been opened in some Muslim countries. Middle East’s first wallet BitOasis which opened for UAE customers, and is now available in Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman. Indonesia’s Bitcoin and Malaysia’s Coinbox also offer services linked to cryptocurrencies.

    The absence of a single regulator for cryptocurrencies is one of the major issues which confuses followers of Islam, according to Kalimullina. “Among the main arguments against bitcoin is a high degree of risk (maisir) and uncertainty (garar), a lack of provision of real assets and state guarantees,” she said.

    The expert added that it is not forbidden to conduct bitcoin operations for Muslims if they access all the “risks and the high probability of garar and maisir.” The UAE has recently started issuing a new cryptocurrency, secured with gold, she said.

    Islamic banking requires banking activities following the religious teachings of Islam. Maisir and garar are forbidden by Islamic law. Sharia law requires a currency to be tangible or to have evidence of existence. Islam forbids the use of a money that is tied to debt, and prohibits the charging and profiting from interest paid out on loans. For a currency to be halal, it must be deflationary in nature meaning that it is resistant to inflation and has a steady market price.

     

    Source: RT

  • Bitcoin Is Un-Islamic, Says Turkey, As Price Soars Above $10,000

    Bitcoin Is Un-Islamic, Says Turkey, As Price Soars Above $10,000

    Turkish authorities have declared that Bitcoin is not accordant with Islam and has warned its citizens against buying the world’s most popular cryptocurrency.

    Turkey’s Directorate of Religious Affairs, known as Diyanet, said that the cryptocurrency is widely used for nefarious and illegal activities, and is not sufficiently regulated, making it far more volatile than other currencies.

    “Buying and selling virtual currencies is not compatible with religion at this time because of the fact that their valuation is open to speculation, they can be easily used in illegal activities like money laundering and they are not under the state’s audit and surveillance,” Diyanet said. It added that Bitcoin had not been authorized by the state.

    The religious body took a decision on the digital currency at a meeting last Friday. Turkish citizens have still invested in Bitcoin despite the warnings from the government, and criminals are also capitalizing on the rise in the currency’s value.

    Gold plated souvenir Bitcoin coins are arranged for a photograph in London on November 20, 2017. Bitcoin, a type of cryptocurrency, uses peer-to-peer technology to operate with no central authority or banks. Justin Tallis/AFP/Getty

    Earlier this month, Turkish police captured a gang who had extorted 450 bitcoins, worth around $3.3 million at the time, from a wealthy businessman, forcing him to transfer them from his laptop and hand over his online banking passwords. The gang targeted him because he showed off his flashy lifestyle on social media.

    As the digital currency rises in popularity, the president of Turkey’s Central Bank said that research is taking place into cryptocurrencies more generally. Murat Cetinkaya said that such digital currencies could “contribute to financial stability,” according to Bitcoin.com.

    The cryptocurrency is the financial story of 2017, rising from less than $1,000 at the start of January to more than $10,000 at the time of writing. Enthusiasts of the digital currency say it could continue its ascent, but financial juggernauts have expressed cautioned about its lack of regulation.

    Bitcoin’s market value remains less than $200 billion, a slither of the world’s $200 trillion in financial market assets, and cryptofunds—some run by top U.S. financiers—are beginning to pop up as confidence around Bitcoin’s potential spreads.

     

     

    Source: Newsweek