International Fiqh Academy: Dealing With Cryptocurrencies is Risky

Participants in the recent two days cryptocurrencies event that was held last week by the Islamic International Fiqh Academy in Jeddah (western Saudi Arabia), recommended further research and study before trading and investing in cryptocurrencies because of the price volatility and the various risks involved in dealing with crypto.

The participants pointed out that cryptocurrencies such as Bitcoin, Ether, and Ripple are only computer codes and do not have a tangible physical entity, or physical presence, and are traded between the parties in a peer-to-peer system. Cryptocurrencies cannot be physically owned and transferred between parties so it might generate greater risk for crypto investors’ portfolios

They added: Despite the spread of cryptocurrencies in many countries, many studies indicate the risks involved in dealing with cryptocurrencies in general, most notably price fluctuations and most of its dealings in speculation Illegal transactions, as well as technical threats that could be caused by the rapid developments in this area and the realistic threats facing Bitcoin due to the lack of a government body to oversee their issuance.