Turkey has officially announced that Bitcoin actually not compatible with Islam because the government is unable to control it.
After a meeting of Diyanet (state Directorate of Religious Affairs, lawmakers claimed that Bitcoin has speculative nature. This practically means that it’s inappropriate for Muslims to buy and sell it.
According to Euronews, they stated that Buying and selling cryptocurrencies isn’t compatible with Islam currently, due to the fact that their valuation is open to speculation. Also, they said that digital currencies can be often used in money laundering and other illegal activities, and they are not under the surveillance and audit of the country.
Diyanet made the above announcement at Nov. 24, a few days before Bitcoin’s latest bull run that lead the coin to worth more than $11,000 and later falling 15 percent.
The council had the exact same opinion for Ethereum as well.
After Turkey banned PayPal, it became the target of some Bitcoin startups. The conditions were unstable though.
Bitcoin startups can’t establish themselves in Turkey.
For instance, BTCTurk, a Bitcoin exchange that has to temporarily stop its operations in 2016. The local banks terminated its accounts without a single warning, so It didn’t manage to find a bank to partner with.
On the other hand, with a speculation view, traders may profit from lira’s low performance. It has lost 50% of its value compare to US Dollar since 2013.