• Tue. Nov 2nd, 2021

Islamic organization in Indonesia issues fatwa against cryptocurrency – bitcoin news

ByHazel R. Lang

Oct 28, 2021

A provincial branch of one of Indonesia’s largest Islamic organizations has declared the cryptocurrency “haram” or banned under religious law. The decision came after a “heated discussion” joined by a crypto expert who was asked to explain in detail the practice of using digital coins.

The cryptocurrency considered as “Haram” in Indonesia

The local branch of Indonesian religious organization Nahdlatul Ulama in East Java recently issued a fatwa on the status of cryptocurrencies under Islamic law. According to the non-binding opinion, digital currencies secured by cryptography and used as a transaction instrument should be considered “haram”, which means prohibited.

The move came in the wake of the “bahtsul masail,” a discussion hosted by the organization on Sunday (October 24), Indonesian news portal Tempo reported. Members involved in the debate, whom the article describes as “dynamic” and “passionate,” concluded that the use of cryptocurrency could undermine the legality of financial transactions.

Another point that was raised during the meeting is that crypto could serve as a tool to commit fraud. An advertisement posted on the website of the Nahdlatul Ulama branch of East Java quotes Kiai Azizi Chasbullah, the “certifier of the discussion”:

Participants in the Bahtsul Masail felt that although crypto is already recognized by the government as a commodity, it cannot be legalized under the [Islamic sharia].

During the meeting, they also decided that “cryptocurrency has no advantage from a sharia point of view, as mentioned in fiqh”, or Islamic jurisprudence. According to the Indonesian publication, this position was confirmed by a “cryptocurrency expert” who took part in the religious debate to explain “good practice in the use of digital currency”.

The Islamic organization’s fatwa comes after the Jakarta government recently indicated that Indonesia was not considering imposing a broad cryptocurrency ban. Speaking to local media, the country’s Commerce Minister Muhammad Luthfi said the executive branch will not follow in the footsteps of China, which this year reiterated a ban on all crypto transactions and launched a crackdown on it. mining and trading of bitcoins.

The popularity of cryptocurrencies has increased in Indonesia, which is the country with the largest Muslim population in the world. Crypto trading has skyrocketed this year, and data from the 13 national exchanges authorized by the country’s Futures Supervisory Board shows a 40% increase in transactions in the first five months of 2021. Last year , the total volume reached 65 trillion rupees ($ 4.5 billion). ).

Opinions regarding decentralized digital currency have varied among Islamic scholars, pundits, and ordinary Muslims over the years. In May, a decision by a leading religious body in the Russian Republic of Ingushetia to ban cryptocurrency transactions sparked backlash on social media. Last October, a leading sharia compliance expert in Malaysia said crypto assets were a legitimate commodity.

Do you think Nahdlatul Ulama’s cryptocurrency fatwa will be supported by other Islamic organizations in Indonesia? Share your thoughts on the subject in the comments section below.

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Crypto, crypto expert, Cryptocurrency, Cryptocurrency, debate, Digital currencies, Digital currency, discussions, Expert, fatwa, haram, Indonesia, Indonesian, Islam, Islamic, Islamic law, legal, Muslim, Muslims, Nahdlatul Ulama, Opinion, Organization, religious, sharia

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