Saturday, June 25, 2022

“Cryptocurrency is Prohibited” According to Indonesia Council of Ulema


The Indonesian Ulema Council (MUI) has issued a legal fatwa for cryptocurrencies. MUI forbids the use of cryptocurrencies or cryptocurrencies as currency. The Fatwa was ratified at the VII Ijtima Ulama Forum in Indonesia.

The chairman of the Indonesian Ulema Council (MUI) for Fatwa, KH Asrorun Nia’m Sholeh explained, the reason crypto is haram as currency is because it contains gharar, dharar, and is contrary to Law Number 7 of 2011 and Bank Indonesia Regulation number 17 of 2015.

“The use of cryptocurrency as a legal currency is prohibited because it contains gharar, dharar, and is contrary to Law Number 7 of 2011 and Bank Indonesia Regulation number 17 of 2015,” said Asrorun to Kompas.com, Friday (12/11/2021).

Image source: reviewgeek.com

Asrorun said that cryptocurrencies as digital commodities/assets are not legally traded because they contain gharar, dharar, qimar and do not meet the syar’i sil’ah requirements.

As for the conditions of sil’ah in syar’i, namely, there is a physical form, has a value, the amount is known with certainty, property rights, and can be handed over to the buyer.

Meanwhile, cryptocurrencies are commodities/assets that qualify as sil’ah and have underlying, and have clear benefits that are legal to trade.

“Cryptocurrencies are commodities/assets that meet the requirements as sil’ah and have underlying and have clear benefits that are legally valid to be traded,” said Asrorun.

Previously, reported by Kompas TV, November 6th, 2021, the East Java Nahdlatul Ulama Management (NU East Java) issued an illicit Fatwa related to the use of crypto money (crypto money law).

The chairman of the East Java NU LBM PW, Ahmad Ahsyar Sofwan, explained the main reason his party forbade the use of crypto money was because it did not meet the rules of traded commodities.

“Regarding cryptocurrencies, East Java NU agrees that it is not a commodity or merchandise,” he said. According to him, crypto money doesn’t qualify as a commodity at all because it doesn’t have a real form or physical form.

“So a trade must be goods, only physical goods that are tangible. After there are holy, useful properties, they are handed over, while if there are no goods, what will happen,” said Ahsyar.

The terms of merchandise or commodities with a physical form, he continued, cannot be tolerated in sharia law. According to East Java NU, crypto money is only digital. East Java NU is also guided by Fatwas from a number of scholars in various countries as well as studies from experts.

Tongku Aidil Syahputra
Hello, it's me, lol. Still a new writer here, anyways. i always had a big passion in writing, i do hope i can show you how big my passion is through my writing

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