Indonesian Cryptocurrency Users Circumvent Islamic Edict

Indonesian Muslim cryptocurrency users circumvent Islamic edict. The national council of Islamic scholars in Indonesia has declared that trading in cryptocurrencies. Such as Bitcoin is prohibited for Muslims. Despite the fact that the popularity of digital currencies is growing. In the world’s largest Muslim-majority country, Indonesia.

During a recent online discussion, Indonesia’s quasi-governmental Ulama Council issued a fatwa. Or non-binding religious opinion, declaring that cryptocurrency is haram. Prohibited under Islamic law — and so should be avoided.

An Ulama is a Muslim scholar who often regarded as possessing. Specialized knowledge in the Islamic religion.

An Islamic transaction must meet specific characteristics. Such as having a physical form and an established monetary value. In order to be valid under Islamic law.

KH Asrorun Niam Sholeh, the council’s head of religious decrees. Stated in the forum that “cryptocurrency as currency prohibited. Since it has aspects of ambiguity, harm, and does not fit. The Islamic criterion according to Shariah [law].”

Mr Sholeh, on the other hand, stated that while cryptocurrencies as a form of cash are prohibit. They may exchanged as commodities or digital assets if they meet certain standards.

The council has functioned as an authoritative source for Shariah compliance in Indonesia. But they have also come under fire for issuing questionable fatwas in other countries.

In 2018, it issued a fatwa, expressing concern about a measles-rubella vaccine. Citing the fact that it contained residues of pig and human cells, among other ingredients.

The council also offers halal certificates — which are the polar opposite of haram certificates. For food and other products that consumed in the country.

NU (Nahdlatul Ulama) is one of the world’s largest Islamic organizations

NU (Nahdlatul Ulama) is one of the largest Islamic organizations in the world. With around 90 million members and adherents worldwide.

A fatwa issued by the branch’s East Java branch in October, proclaiming digital money to be haram.

Deputy Chairman of the East Java NU, Ahmad Fahrur Rozi (also known as Gus Fahrur). Told the Australian Broadcasting Corporation that the fatwa. It was based on the outcomes of a forum discussion of matters related to Islamic law.

After a lengthy conversation that included representatives. From both the Indonesian Cryptocurrency and Islamic law communities. One of the conclusions reached was that crypto trading is prone to including “fraudulent acts and gambling.”

“It’s the same way that it’s not permitted for a person to purchase unclear objects. Such as ‘fishes in the water’ or ‘birds in the sky,'” Gus Fahrur told the ABC in an interview.

He claimed that cryptocurrencies were also analogous to gambling in that individuals speculated. About their worth without knowing the underlying cause of the fluctuation.

Practices such as gambling are not permitted in Islam because the value and price are unpredictably fluctuating. And can cause financial and physiological harm to people who engage in them.

In contrast, he asserted that stocks had a clear worth and that the price fluctuated. Response to the performance of the company in question.

In light of the significant amount of speculation around the value of cryptocurrencies. They determined that it was “unsuitable to used as an investment vehicle,” according to him.

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