There has been an ongoing debate in the Muslim community about whether digital currencies can ever be compliant with Islamic law. Recently, Islamic experts from the Masjid Ramadan mosque in east London declared that cryptocurrency is permissible if its users utilize it “in a lawful manner.” The mosque, commonly known as the Shacklewell Lane Mosque, will now be accepting crypto from Muslim users who want to use digital currencies for their zakat donations during Ramadan.
As The Telegraph reported on Tuesday, religious adviser Zayd al Khair determined that there is no form of money inherently compliant with Islamic law. He suggested that it is the way that a currency is used that determines its permissibility:
“Any money or currency is neither halal – permissible – nor haram – impermissible.
Guidance is about the value which it represents. If money is transacted in a lawful manner then it is halal.
We do not always know the source of cash donations, but we take these in good faith too."
The mosque will reportedly be limiting donations to two forms of cryptocurrency: Bitcoin and Ethereum. The move to accept digital currency donations comes in the midst of Ramadan, and will provide Muslim crypto users with yet another option as they make their required annual 2.5 percent alms contribution.
Donations to the mosque will reportedly be used for building repairs, charitable activities to help the poor, and assistance to families who cannot pay for loved ones’ funeral expenses.