The East Java Department of one of the largest Islamic organizations in Indonesia, Nahdlatul Ulama (NU), has one fatwa in which it considers the use of cryptocurrencies to be “haram” or is forbidden under Islamic law.
A fatwa is a non-binding legal opinion on Islamic law that is part of a debate entitled bahtsul masail. to bahtsul masail Representatives of the management of the Nahdlatul Ulama branch and various Islamic boarding schools in East Java took part.
Interest in cryptocurrencies has increased in Indonesia over the past year. Earlier this month, a Coinformant report reported that Indonesia saw a massive 1.772% increase in the number of people interested in articles related to cryptocurrencies in 2021.
Indonesia is home to the largest Muslim population in the world and has a booming cryptocurrency industry. According to the Indonesian Ministry of Commerce By May of this year, the country had attracted around 6.5 million crypto investors, dwarfing the 5.7 million private investors registered on the Indonesian stock exchange.
An announcement posted on the East Java Division’s Nahdlatul Ulama website on Sunday quoted President Kiai Azizi Chasbullah as saying:
â ???? Bahtsul Masail participants are of the opinion that although the government recognizes cryptocurrencies as a commodity, they cannot be legalized under Islamic Sharia law.
The group concluded that Cryptocurrencies have been viewed as haram because they involve too much speculation and therefore cannot be used as a legitimate investment.
“Based on several considerations, including the prevalence of fraud, it is considered illegal.”said a representative from the Lirboyo Kediri Islamic boarding school.
Some Muslim scholars believe that cryptocurrencies are similar to gambling, which is prohibited by Islamic religious law. Nevertheless, Opinions differ and other Islamic organizations around the world say that Islamic law allows cryptocurrencies.
Last year The Malaysian authority, which oversees compliance with Islamic finance laws, announced that it would allow trading in digital assets.
In Australia, too, there are efforts to achieve that world’s first decentralized financial platform (DeFi) to be governed by Sharia law Navigate between the benefits of DeFi and the beliefs of Islamic finance.
In September, Indonesian Trade Minister Muhammad Lutfi told local media that Indonesia has no plans to follow in China’s footsteps and ban cryptocurrency trading, mining or trading.