Experts Debate on Whether Cryptocurrencies Meet Shariah Standards

With the Islamic finance industry and use of cryptocurrencies increasingly gaining popularity, Australia-based Hejaz Financial Services (Hejaz) has provided an explanation on the debate of whether cryptocurrencies belong in the Shariah-approved finance category.

Why it Matters?

Shariah principles include rules to be followed by the Islamic finance sector with regard to the permitted ways of making, spending and investing money which include the regulation that, in respect of currency, transactions should have a physical form and a definite value. Cryptocurrencies do not meet either requirement. Hejaz explains that the reasoning behind the rules is that transactions that do not take a physical form or have a definite value carry an element of speculati...