Diyanet against Bitcoin

Diyanet, the Turkish religious authority has ruled that bitcoin is not in accordance with Islam at this point of time.

“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,” according to Diyanet, as quoted by local newspapers. Noteworthy it said is also that the digital currencies are not under a central authority or under guarantee of a state or financial institution.

A recently released 55-page research paper by Faraz Adam of Amanah Finance Consultancy on the topic, it was concluded that bitcoin is “not ideal as a long-term investment, and neither should the Islamic finance industry consider its use in exchange, unless there is a specific need, until a regulated and transparent framework is established”.

Additionally, Malaysian-based International Shariah Research Academy for Islamic Finance has undertaken a research project on cryptocurrency, led by its researcher Dr Farrukh Habib.