Egypt’s Grand Mufti Shawki Allam said in an official fatwa on Monday that trading with Bitcoin was "unlawful" according to Islamic rulings, Middle East Eye reported.
He explained that using the virtual currency is not allowed as it is not legalised by the Egyptian government.
“Bitcoin could be harmful to the country’s social and economic security,” Dar Al Iftaa, a top religious institution in Egypt, said, stressing that the currency could break through the national security and central financial systems.
Allam’s adviser, Magdy Ashour, said the currency “is used directly to fund terrorists”, explaining that its transactions could damage the economy.
“It has no set rules, which is considered as a contract annulment in Islam, that is why it is forbidden,” Ashour added.
Egypt was not the only country prohibiting Bitcoin. A Saudi minister, Assim Al-Hakim, recently announced that the currency is forbidden in the country because “it is a cryptographic form of money that is vague and gives namelessness to crooks”.