Islamic organization in Indonesia publishes FATWA against cryptocurrency -
Islamic organization in Indonesia publishes FATWA against cryptocurrency -
A provincial branch of one of the largest Islamic organizations in Indonesia has declared cryptocurrency to "Haram" or banned according to religious law. The decision was made after a "hot discussion", where a crypto expert, who was invited, to explain the practice of using digital coins in detail.
cryptocurrency is considered "Haram"
in IndonesiaThe local branch of the Indonesian religious organization Nahdlatul Ulama in East-Java recently has a fatwa to the status of cryptocurrencies according to Islamic law. Cryptographically secured digital currencies that are used as a transaction instrument are to be regarded as "haram", that is, forbidden, after the non -binding statement.
The decision is the result of "Bahtsul-Masail", a discussion of the organization on Sunday, October 24, the Indonesian news portal reported. Members involved in the debate, which the article describes as "dynamic" and "heated up", came to the conclusion that the use of cryptocurrency could undermine the legality of financial transactions.
Another point that was addressed during the meeting is that Krypto could serve as an instrument to inspect fraud. An announcement published on the website of the Nahdlatul Ulama branch in East Java cites Kiai Azizi Chasbullah, the "Certificator of the Discussion", with the words:
The participants of the Bahtsul-Masails believed that crypto, although Krypto has already been recognized by the government as a goods, cannot be legalized [Islamic Sharia].
During the meeting, they also decided that "cryptocurrency has no benefit from the Sharia perspective, as mentioned in FIQH" or Islamic case law. According to the Indonesian publication, this position was confirmed by a "cryptocurrency expert" who took part in the religious debate to explain "the right practice when using the digital currency".
The Fatwa of the Islamic Organization recently comes after the government in Jakarta specified that Indonesia does not plan a comprehensive ban on cryptocurrencies. In a conversation with local media, the country's trade minister, Muhammad Luthfi, said that the executive would not enter the footsteps of China, which were repeated this year: ban on all crypto transactions and started a target = "_ blank" href = "https://news.bitcoin.com/chinas-hebei-begins-begins crawddown-on-crypto-and-trading- Reports-reveal/" Rel = "noopener"> through via bitcoin-mining and -trading.
The popularity of cryptocurrencies has increased in Indonesia, the nation with the largest Muslim population in the world. The crypto handle has risen on a sudden this year and data from the 13 country exchanges approved by the Futures Exchange Exchange Supervisory Board showed an increase in transactions by 40% in the first five months of 2021. In the past year, the total volume reached 65 trillion rupees ($ 4.5 billion.). ).
The opinions about decentralized digital money have changed over the years among Islamic scholars, experts and ordinary Muslims. In May the decision of a prominent religious corporation in the Russian Republic of Ingushetia to prohibit dealing with cryptocurrencies provokes negative reactions on social media. In October last year, a leading Sharia compliance expert in Malaysia called crypto-assets a legitimate goods are.
Do you believe that Nahdlatul Ulamas Fatwa is supported by other Islamic organizations in Indonesia? Share your thoughts on this topic in the comments below.
Bedy verification : Shutterstock, Pixabay, Wiki Commons