Industry insiders: Blockchain is the best fintech to ensure compliance with Islamic law

Mohemed AlKaff AlHashmi, co-founder of Haqq Network, said in an interview that blockchain systems are the best way to ensure compliance with Islamic law (which contains strict financial regulations) because of their high transparency, traceability and community governance structure. AlHashmi explained that financial activities such as guaranteed interest lending, usury and gambling are prohibited in Islam. The best way to ensure that income or funds come only from "halal" or legal sources is to use blockchain to verify transactions. Verifying whether sources of income and investments comply with Islamic law has historically been difficult due to technological limitations, commingling of institutional funds, and the opacity of traditional financial systems. AlHashmi said that the Islamic finance industry is worth about $4 trillion and could double in the next five years. A September 2024 report by Chainalysis found that the Middle East and North Africa region (which is mainly composed of Muslim, Arabic-speaking countries) accounted for 7.5% of global cryptocurrency trading volume between July 2023 and June 2024. (Cointelegraph)