Crypto Cryptocurrency has been declared Haram by Indonesia's Islamic Authority

[Yusra3]

The Ulema Committee of Indonesia (Majelis Ulama Indonesia or MUI), the state's leading Islamic organisation with Shari'ah authority, has allegedly proclaimed the use of cryptocurrency as a form of money haram, or outlawed in Islamic law for Muslims.According to Bloomberg, Asrorun Niam Sholeh, the director of religious regulations, indicated Thursday that cryptocurrency includes aspects of "uncertainty, wagering, and injury," and after that, the council convened an official hearing.

He did, however, state that if cryptocurrency can adhere to Shariah principles and demonstrate a demonstrable advantage, it may be sold as a digital asset or traded as a digital commodity.Indonesia has the world's largest Muslim minority, with 231 million Muslims accounting for 86.7 percent of the nation's population.On Islamic finance concerns, the Ulema Committee supports the nation's finance minister and central bank.

 

[Good-Guy]

I am a Muslim myself and I do not think that cryptocurrency is Haram. It is very important to remember that Indonesia is the same country where a scholar stated that cryptocurrency is halal. I do not know what makes them think that cryptocurrencies are haram when there is no interest involved at all. Perhaps they misunderstood how cryptocurrencies work.

 

[btaliat]

People must know how the concept of crypto works. It is just like trading. Let assume we buy a particular physical goods and we keep for a while and the price of such a goods increases, and we sell during this period, to make profits. How is that one haram?

 

[Good-Guy]

People must know how the concept of crypto works. It is just like trading. Let assume we buy a particular physical goods and we keep for a while and the price of such a goods increases, and we sell during this period, to make profits. How is that one haram?

Trading in Cryptocurrencies is just like trading in stocks. Stocks are halal and so are cryptocurrencies because just like stocks and shares, cryptocurrencies have a real market value. I have read some articles and it states that they have declared crypto haram just because of uncertainty. Perhaps, they may not know how cryptocurrencies work and this is why they held a negative view about digital currencies.

 

[spcrypto]

Indonesia's council of religious leaders has forbidden the use of crypto assets as a currency for Muslims. The religious council has deemed cryptocurrency as haram for Muslims. The head of religious decrees said that there are elements of uncertainty, wagering and harm.

 

[Good-Guy]

Indonesia's council of religious leaders has forbidden the use of crypto assets as a currency for Muslims. The religious council has deemed cryptocurrency as haram for Muslims. The head of religious decrees said that there are elements of uncertainty, wagering and harm.

First of all, cryptocurrencies do not have "elements of wagering". The value of cryptocurrencies are determined by various real factors such as foreign policies regarding cryptocurrencies, Proof of work, international market value of Bitcoin, and mining capabilities and legality of crypto in various countries. So the claim that cryptocurrencies are just like gambling your money in a casino or it has "wagering elements" is totally incorrect. Perhaps the Indonesian Council needs to reconsider their decision regarding cryptocurrencies.

 

[sincerem]

They should simply make their researches well around cryptocurrency before deciding what to brand it. I've been around cryptocurrency for two years now, my little experience have shown me more positive around the market than it's negative. When who simply pay attention towards learning how it works will come to understand that the market isn't what others brand it 'illegal. It is legal and a way of investing money to earn huge dividends in the future. Majority of persons are making a living simply trading cryptocurrency and studying the market volatility.

 

[Suba]

Since 2015, the Indonesian government has prohibited the use of cryptocurrencies as a medium of exchange, but has allowed crypto as a commodity that can be traded such as securities, stocks and forex. But the MUI (Indonesian Ulema Council) through the 7th Ijtima Ulama Fatwa Commission stated that cryptocurrency is haram (11/11/2021). Although this news has spread all over the world, but so far, it doesn't seem to have any impact on cryptocurrency users in Indonesia. All crypto exchanges both local and from abroad are still crowded with traders. I think the MUI Fatwa was issued in a hurry. Only forbid (haram) crypto as a medium of exchange which was previously prohibited by the government. On 14/11/2021, the Bahtsul Masail Forum was held by the Islamic Law Firm and the Wahid Foundation at Hotel Borobudur, Jakarta. Yenny Wahid (daughter of Abdurrahman Wahid, the 4th President of Indonesia), explained that cryptocurrency is halal as long as it is not prohibited by the state.