Crypto Currency is Haram, This is the Result of the 7th Ijtima Ulama

THECRYPTO.WATCHCrypto currency is haram, making some people indecisive and doubtful. This news has been circulating for a long time and makes those who want to invest hesitate.

In Indonesia, there is an Indonesian Ulema Council that reviews cryptocurrencies and issues fatwas on their use. Not only that, they also provide an explanation of the legal basics of using crypto currencies in Islam.

Explanation of the Indonesian Ulema Council regarding Crypto Money is Haram 

In the 7th ijtima ulama, the Indonesian Ulema Council (MUI) agreed on 12 discussion points on the use and trade of cryptocurrencies. KH Asrorun Niam Sholeh, who is the head of the MUI in the field of fatwas, said that the use or trading of cryptocurrency is haram.

This expression is, of course, the result of the deliberation of the scholars with various considerations. Scholars consider that in trading or using cryptocurrency, there are gharar and dharar, which are contrary to Islamic law. This is also contrary to Law No. 7 of 2011 and Bank Indonesia Regulation number 17 of 2015.

In addition, cryptocurrency as a commodity or digital asset is also considered illegal to be traded. The reason is that in this activity there are gharar, dharar, and qimar.

Niam said on Thursday November 2011 in Jakarta, the use of cryptocurrencies as a legal currency is illegal. This is because there are gharar and dharar that are not in accordance with law number 7 of 2011. The use of cryptocurrency as currency is also not in accordance with Bank Indonesia Regulation number 17 of 2015.

KH Asrorun Niam Sholeh also added that cryptocurrencies do not meet requirements of sil’ah islamically. Where there is no physical form, value, real amount, ownership rights, and can be given to the buyer.

The fatwa issued by the MUI certainly reaps a lot of controversy. However, until now the Indonesian government has not acknowledged that crypto money can be used as a means of payment. The legal instrument of payment in Indonesia is still in the form of rupiah.

However, even though the MUI declares that cryptocurrency is haram, crypto asset trading is supervised by the commodity futures trading regulatory agency (Bappebti).


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