Can We Invest in Cryptocurrency Originating from Israel?
The rapid growth of cryptocurrency has opened up numerous investment opportunities, capturing global attention. However, with this expansion come complex ethical questions. At Sharlife, where we focus on analyzing the Shariah compliance of digital assets, we sometimes encounter coins originating from Israel. Given the ongoing conflict in Palestine, many investors are now questioning whether investing in these cryptocurrencies aligns with their values. This issue goes beyond financial gains, touching on ethics, solidarity, and the global impact of investment choices. In this article, we will explore these concerns, offering insights to help investors navigate these challenging decisions with an ethical and informed perspective.
Israel as a Technological Powerhouse
Israel's technology sector, often referred to as "Start-Up Nation," has been a breeding ground for innovation in blockchain technology. This reflects Israel's remarkable ability to foster innovation and entrepreneurship, leading to a vibrant technology sector that has gained global recognition. Despite its small size and geopolitical challenges, Israel has established itself as a technological powerhouse, characterized by a high density of start-ups, significant venture capital investment, and a strong emphasis on research and development.
Major Players in Israel’s Tech Scene
- Intel
Intel has been a significant player in Israel's tech landscape for decades. The company operates three major R&D centers, and each of these Israeli centers has a specialized focus: Haifa works on CPUs, AI hardware, and software; Petah Tikva develops communications and AI solutions; and Jerusalem is involved in communications, software, and cybersecurity. However, recent reports indicate that Intel is scaling back its R&D teams in Israel due to broader corporate restructuring efforts. Despite this, Intel remains one of the largest employers in the Israeli tech sector.
Google has established multiple R&D centers across Israel, contributing to advancements in various fields including cloud computing and artificial intelligence. The company’s commitment to innovation is evident through its involvement in local startups and partnerships with academic institutions.
- Amazon
Amazon's presence in Israel is also notable, particularly through its Amazon Web Services (AWS) division. The company has invested in local talent and technology while also acquiring Israeli firms like Annapurna Labs to enhance its cloud capabilities. In addition to AWS, Amazon has recently set up data centers as part of Project Nimbus, further solidifying its investment in Israeli technology infrastructure.
Here, it's clear that Israel is a leading hub for innovative technology globally.
Investment Status
The question remains, is it permissible to invest in cryptocurrency originating from Israel? Generally, transacting with Jews is permissible as long as it meets the conditions of a contract of sale, such as a valid contract, permissible goods, and a valid offer and acceptance. Imam Nawawi stated that the permissibility of transactions with non-Muslims has been agreed upon by scholars. However, this permissibility is limited to permissible matters only. If the transaction could lead to something prohibited, such as selling weapons to enemies of Islam, any form of support for promoting their religion, buying their religious books, then such transactions are prohibited.
Sheikh Dr. Ajil Jassim Al-Nashmi, former Shariah Committee member of Kuwait Finance House Malaysia, stated that it's obligatory to boycott companies supporting Zionist entities. Additionally, purchasing from these companies signifies acknowledging their atrocities. Thus, supporting Zionist entities is prohibited in Islam.
Sharlife's Perspective
At Sharlife, we are committed to assessing the Shariah compliance of cryptocurrencies and guiding Muslim investors accordingly. In light of the ongoing conflict between Israel and Palestine, we maintain that cryptocurrencies originating from Israel are not Shariah-compliant. While these digital assets may be developed by Israeli citizens with diverse political and religious views, rather than directly by the government responsible for actions against Palestine, we believe that any economic activity contributing to the overall Israeli economy should be restricted.
Investing in cryptocurrencies does not fall under “dahruriyyat” (necessities) but rather “hajiyyat” (needs). Therefore, to prevent greater harm, we advocate for a collective boycott of products originating from Israel, including Israeli-developed cryptocurrencies. This stance aligns with our values and commitment to ethical investing, prioritizing solidarity and the principles of Shariah compliance.
Conclusion
Reflecting on the words of Prophet Muhammad (peace be upon him):
لَا يُؤْمِنُ أَحَدُكُمْ حَتَّى يُحِبَّ لِأَخِيهِ مَا يُحِبُّ لِنَفْسِهِ
Means: "None of you [truly] believes until he loves for his brother that which he loves for himself"
As we consider investment opportunities, we must also ponder: Is it truly worth investing in Israeli crypto while our brothers and sisters in Palestine continue to suffer? Is any potential profit worth the cost of lives and ongoing oppression? Let us come together and reflect deeply on our choices, prioritizing our values and the well-being of our community.
