Will Haram Fatwa Stop Crypto Assets in Indonesia?

By Editorial Team 20/01/2022
NFT
Summary

Several Islamic organizations issued haram fatwas over digital assets such as cryptocurrencies and non-fungible tokens (NFT). On January 18, 2022, the Tarjih and Tajdid council of the Muhammadiyah Central Executive Board issued a fatwa against the use of cryptocurrencies. "Tarjih's fatwa stipulates that cryptocurrencies are illegal both as an investment tool and as a medium of exchange," citing the fatwa on Muhammadiyah's official website.

Muhamadiyah follows The Indonesian Ulema Council (MUI) 's decision on its seventh Fatwa Commission Ijtima Ulama on November 9-11, 2021. MUI Chair for Fatwa Asrorun Niam Sholeh said the use of cryptocurrencies is haram, or illegal in Islam because it contains gharar and dharar (speculation) and is contrary to Law No.7/2011 and Bank Indonesia Regulation No.17/2015 on Legal Payment Instruments. The East Java Nahdlatul Ulama (PWNU) Region administrators said that cryptocurrencies cannot be recognized as commodities and cannot be traded.

Register now and get free access.

If you want to get free access to our Daily Insights and Weekly Digest, please click "Sign up" button below. If you already have an account, please login.

Sign up
Log in
What do subscribers receive?

As a subscriber, you'll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Register now and get free access, click here to register. Feel free to contact us with any additional questions you have.