Muslim Personal Law Board member says bitcoins are against Islamic law

A sign is seen outside a business where a Bitcoin ATM is located in Toronto, Ontario, Canada June 3, 2017. REUTERS/Chris Helgren - RTX38TW3

The All India Muslim Personal Law Board (AIMPLB) has asked for the Muslim community to shun bitcoins as they are un-Islamic.

As per a report by Deccan Chronicle, AIMPLB senior functionary Maulana Wali Rahmani issued a statement on June 29, saying that the financial currencies must have its roots in Islamic finance model, like the paper currency which can be exchanged equally for other products like gold and silver.

He said, “Bitcoin has no set rules, which is considered as a contract annulment in Islam. That is why it is forbidden.”

Cryptocurrencies have gained popularity in the past few years and its popularity has invoked governing authorities across the world to question their legitimacy.

The Muslim nations have divided opinions about the digital currency with the UAE permitting its transaction, while Saudi cleric Shaikh Assim Al-Hakeem pronouncing it to be haram (forbidden) money.

In Egypt and Turkey, Muslim scholars have collectively emphasised on bitcoin transaction to be against Islam as its value is “open to speculation” and it could be used in “illegal activities”.

RBI has stopped banks to conduct business with firms involved in cryptocurrency businesses.