Indonesian religious organization issues decree that prohibits the use of crypto by the country's Muslim population - regulation
Indonesian religious organization issues decree that prohibits the use of crypto by the country's Muslim population - regulation
The Indonesian Tarjih Council and the Central Executive Tajdid of Muhammadiyah have issued a FATWA (decree) that defines the illegality of the use or investment of cryptocurrencies by the country's Muslims. The FATWA indicates volatility and lack of state support as reasons why Muslims have to avoid investing or using cryptocurrencies.
cryptocurrencies are considered too volatile
The Indonesian Islamic Organization Tarjih Council and the Central Executive Tajdid of Muhammadiyah have issued a fatwa against the use of cryptocurrency in the Asian country. The FATWA, which has advised another Islamic organization from the use of cryptocurrencies, come, explains Muslims the illegality and harmfulness of the use of cryptocurrencies.
"Tarjihs Fatwa stipulates that cryptocurrencies are illegal both as an investment instrument and as a medium of exchange," says an explanation on the website of the Islamic Organization.
as in a CNBC Indonesia explains test report , the Islamic organization indicates the volatility of cryptocurrencies as one of the reasons for the publication of the FATWA. The organization argues that cryptocurrencies such as Bitcoin, since they are not covered by an asset and are considered obscure, are therefore not legal for use by Indonesian Muslims.
consumer protection concerns
In addition to concerns about the volatility of cryptocurrencies, the FATWA explains to the Tarjih assembly why digital assets such as Bitcoin do not fully meet the conditions required to be viewed as a exchange. The FATWA notes of the organization:
The use of Bitcoin as a medium of exchange itself not only did not legalize by our country, but there is also no official authority that is responsible for this. Not to mention when we talk about the protection of consumers who use Bitcoin.
The Fatwa of the Tarjih Assembly is the latest step of an Indonesian Islamic organization against cryptocurrencies after another, the National Ulema Council (MUI), banned it in November 2021 Explain by the ban, the Mui, in a similar way, emphasizes the damage associated with crypto assets and its insecurity.
Although the decrets of Islamic organizations are not legally binding, they can still prevent the mainly Muslim population of Indonesia from investing or using them in digital assets.
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