Sharlife is a Registered Shariah Advisory Firm with Securities Commission Malaysia - The only regulated provider of crypto & stocks Shariah status
Sharlife is a Registered Shariah Advisory Firm with Securities Commission Malaysia - The only regulated provider of crypto & stocks Shariah status
Israel has earned its reputation as the 'Startup Nation,' excelling not only in traditional tech sectors but also in blockchain and cryptocurrency innovation. The country is home to several globally recognized crypto projects that have shaped the digital ecosystem. However, amid growing awareness of the Palestinian struggle, many individuals are choosing to align their investments with ethical considerations by avoiding products or technologies linked to Israel.
This article highlights five major Israeli cryptocurrencies that you should be cautious about and avoid investing in.
1. Bancor (BNT)
Location: Tel Aviv, Israel
Founders: Eyal Hertzog, Guy Benartzi, and Galia Benartzi
Established: 2017
Activity: Bancor is a pioneer in decentralized finance (DeFi), focusing on enhancing liquidity and trading efficiency across the cryptocurrency ecosystem. It introduced an automated market maker (AMM) protocol that facilitates seamless token exchanges without traditional order books, reducing slippage and ensuring continuous liquidity for various tokens.
2. COTI (COTI)
Location: Tel Aviv, Israel
Founder: Shahaf Bar-Geffen
Established: 2017
Activity: COTI is a financial technology (fintech) company that develops digital payment platforms and its own cryptocurrency token known as COTI, enabling private transactions across DeFi applications and creating privacy-focused DApps.This technology utilizes a cryptographic protocol called "Garbled Circuits" to ensure privacy and confidentiality in transactions. Notably, it was selected by the Bank of Israel to participate in its Central Bank Digital Currency (CBDC) initiative alongside PayPal and Fireblocks.
3. Orbs (ORBS)
Location: Tel Aviv, Israel
Founders: Daniel Peled, Tal Kol, and Netta Korin
Established: 2017
Activity: Orbs provides public blockchain infrastructure designed for scalability, low fees, and ease of use. It supports a complete blockchain stack for mass-use applications, offering decentralized solutions tailored for enterprises and large-scale consumer needs
4. DeepDAO
Location: Tel Aviv, Israel
Founders: Eyal Eithcowich
Established: 2020
Activity: DeepDAO is an analytics platform for Decentralized Autonomous Organizations (DAOs). It aggregates data from hundreds of DAO communities and offers insights into treasury holdings, governance activity, voter engagement, and rankings. Often referred to as the “CoinMarketCap for DAOs,” it aids investors and researchers in analyzing the DAO ecosystem effectively.
5. Lava Network
Location: Tel Aviv, Israel
Founders: Yair Cleper and Gil Binder
Established: 2023
Activity: Lava coordinates traffic from AI agents, apps, and wallets across blockchains. Its protocol focuses on RPC (Remote Procedure Call) requests—essential for basic blockchain interactions like sending transactions or checking wallet balances. Lava aggregates data providers to optimize RPC traffic based on speed and reliability. Chains like NEAR, Starknet, Filecoin, and Axelar already pay LAVA stakers over $1 million annually for reliable services.
As a Muslim, the responsibility to boycott products originating from Israel, including cryptocurrency, is an important step in showing solidarity with the struggle of the Palestinian people. This boycott is not only a moral action but is also based on Islamic principles that prohibit any form of support for oppressors. Fatwas issued by religious institutions such as the Indonesian Ulema Council (MUI) emphasize that supporting Israel's economy directly or indirectly is haram. This aligns with the principle of "sadd al-dzari'ah", which aims to prevent greater harm by severing economic ties that could strengthen oppression against Palestine.
Moreover, boycotting Israeli products reflects empathy and solidarity among Muslims for the oppressed Palestinian people. This action serves as a symbol of non-violent jihad, allowing every Muslim individual to play a role in weakening Israel's resources used for subjugation and oppression. In the context of cryptocurrency, although digital assets may be developed by various parties, if they contribute to Israel's economy, they must be avoided.
The boycott of entities based in Israel has also garnered attention from pro-peace groups that have initiated movements like BDS (Boycott, Divestment, and Sanctions) as a protest against Israel's actions toward Palestine. Overall, boycotting Israeli products is both a moral and religious obligation that Muslims can undertake for universal justice and humanity.
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.
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.
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.
