THECRYPTO.WATCH – Crypto money is haram has become a hot topic of discussion among investors and those who intend to become investors. This news even became a debate among the public after the Indonesian Ulema Council (MUI) officially forbade cryptocurrency.
Reasons for MUI Disclosing Cryptocurrency Haram
MUI certainly has reasons when it says that cryptocurrency is forbidden to use. Not only a medium of exchange, crypto money is also said to be illegal to be used as an investment tool. Here are some of the reasons we’ve summarized.
Gharar and Dharar
Gharar is prohibited in Islam because in it there is uncertainty that results in losses. There is also dharar, which is a transaction that results in loss, damage, persecution, and even ownership rights being falsely transferred.
MUI says that in this cryptocurrency there are gharar and dharar. In addition, it also contradicts with Law no. 7 of 2011, as well as Bank Indonesia Regulation No. 17 of 2015.
Qimar or Gambling
The next reason is that in crypto activities there is an element of qimar or gambling. Qimar occurs when the game requires the winner to take advantage of the loser.
Unclear
Crypto money is haram because it does not meet the elements of buying and selling sharia in Islam. In the aspect of buying and selling Sharia, it is required to have a physical form as well as the certainty of the value of the object being exchanged.
MUI wrote, “Cryptocurrency as a digital commodity/asset is not legal to be traded because it contains gharar, dharar, qimar and does not meet the requirements of sil’ah according to syar’i. That is, it has a physical form, value, the amount of which is known with certainty, property rights, and can be handed over to the buyer.”
The fatwa for the prohibition of cryptocurrencies was officially declared by the MUI. At that time, the 7th Ijtima Ulama Forum in Indonesia was held on November 11, 2020. The venue was the Sultan Hotel, Jakarta.
Cryptocurrency in Indonesia
The Ministry of Trade has regulated various matters regarding cryptocurrencies in Indonesia. Regarding the trading of the physical market for crypto assets, the Commodity Futures Supervisory Agency (CoFTRA) presents Rule No. 8 of 2021. It contains guidelines for the implementation of Futures Exchange Physical Market Trading.
In addition, CoFTRA has prepared 229 types of crypto money that can be traded in 13 registered entities. Some of the cryptocurrencies that can be transacted are Bitcoin, Ethereum, and Cardano. This was prepared as crypto trading increased rapidly to IDR 478.8 trillion until July 2021, with 7.5 million customers.
Those are some of the reasons why crypto money is haram and CoFTRA’s efforts to monitor its activities are unstoppable.
