The Sultanate of Oman, situated on the southeastern Arabian Peninsula, is intensifying its engagement with cryptocurrency. The government allocated multi-million investments into crypto services this month. This West Asian country is implementing a strategy to establish itself as a digital hub in a highly competitive region.
In August, Oman’s government unveiled nearly $800 million in new investments for cryptocurrency mining ventures. On August 23, they announced a $300 million partnership with the Abu Dhabi-based Phoenix Group to establish a 150-megawatt cryptocurrency mining facility. Oman’s inaugural licensed crypto-mining entity, Green Data City, is set to become operational next year. Just weeks prior, Muscat approved a $370 million mining operation operated by Exahertz International. This aims to deploy an additional 15,000 machines by October, as reported by local news.
Oman’s recent ventures into crypto mining coincide with a growing acceptance of cryptocurrencies in the wider region. The development also follows extensive discussions within the Islamic community concerning a fundamental question: Are cryptocurrencies compliant with Islamic principles (halal) or forbidden (haram)?
Crypto And Islamic Law
Islamic law, known as Sharia, encompasses financial principles that ascertain various activities’ moral permissibility (halal) or prohibition (haram). Due to its frequently speculative nature, cryptocurrency has been deemed impermissible by certain Islamic scholars. This perspective has led to the issuance of fatwas (Islamic legal edicts) by prominent Islamic organizations in countries like Turkey, Egypt, and Indonesia, the world’s most populous Muslim nation.
Some individuals argue that cryptocurrencies can be considered halal by Islamic law. This perspective arises from the absence of interest (riba) associated with owning tokens like Bitcoin, which aligns with Sharia principles. The growing recognition of cryptocurrency as a form of currency supports the argument that it is halal.
Despite rising debate among Islamic scholars, Muslim nations have been among the biggest adopters of cryptocurrency in recent years.
