THECRYPTO.WATCH – Crypto laws according to MUI have been declared haram in Indonesia. However, some parties want the decision to need to be reviewed.
The development of crypto currencies in Indonesia is hampered by crypto laws according to MUI. Not only prohibited as currency, crypto assets also apply the same. The underlying reason is the absence of a physical form.
Crypto Laws Review According to MUI
The lack of certainty in crypto currency transactions is against Islamic law. The decision from MUI has gone through various studies, as well as a form of protection for Muslims in terms of transactions. However, there are perspectives related to the use of crypto, which are:
The technology in crypto, that is blockchain, is here to answer the challenges of the times. This is the first reason for the need for review of crypto laws according to MUI.
The presence of digital money is a solution to address the gap in currency exchange rates between countries that are felt to be unfair. The fact is that the exchange rate of a country’s currency can be very low compared to other countries.
Digital currency was born in the form of crypto as a single currency, but its use can be for the whole world. So the hope of this cryptocurrency could be a solution to the exchange rate gap. Its existence can reduce the gap in the exchange rate.
Highlighting in terms of security in the blockchain system can also be a solution to security problems. The system is like a ledger that records all transactions that occur. And a decentralized storage system will make it very easy.
Impact of the Fatwa on Other Sectors
The use of cryptocurrencies has spread to other sectors. This is because the smart contract system in the crypto system is profitable if it is applied to other sectors. Because, the system runs automatically against the parties who entered into the agreement.
The banking sector, pharmaceutical industry, real estate and many more, have implemented this system. Blockchain technology has expanded to various market players, both those whose businesses are small to those with large market shares.
Although there are other reasons, for example, the volatile crypto market should still be a problem. On the other hand, western countries are pushing crypto laws according to MUI to immediately make general policies in the financial sector. Meanwhile, in the United Arab Emirates, the use of crypto assets has been legalized.