Crypto Haram According To The Fatwa Of Muhammadiyah, This Is The Response Of The Chairman Of The Indonesian Crypto Asset Traders Association

Crypto assets were fatwa again fatwa illegal, now by Muhammadiyah. (NDTV)

JAKARTA - The Tarjih Council and the Central Leadership Tajdid (PP) Muhammadiyah recently issued a fatwa that is forbidden for cryptocurrencies such as Bitcoin or Ethereum as a medium of exchange or investment. This is not the first time that the MUI and East Java PWNU have issued a haram fatwa for crypto assets. Responding to the issue, the COO of Tokocrypto, Teguh Harmanda, said that his party respects any existing fatwa.

However, he will not stop educating about matters related to crypto (cryptocurrency), including religious organizations. Teguh also emphasized that his party would respect the opinion of Muslim scholars.

"But the fatwa is not the end of everything, it is only a recommendation but we still respect it. It is part of the opinion of Muslim scholars," he said, during the signing of the MoU (Memorandum of Understanding) at T-Hub Batubelig, Bali, Thursday (20/1) yesterday. . "We will not stop educating about crypto, both to the public and to the clergy," he continued.

The chairman of the Indonesian Crypto Asset Traders Association (Askrapindo) also explained that if the crypto approach in Indonesia is a commodity approach, then the rules as a commodity are always introduced.

"Regulators assume that certain fatwas will follow certain rules, in Indonesia there is an official legal umbrella, recommendations from ulama will not be far away. We have legal rules, there are fatwas and these recommendations support these rules," he explained.

Teguh stated that his party will communicate with the government, Aspakrindo, and the Commodity Futures Trading Regulatory Agency (BAPPEPTI) so that the regulator will continue to provide input about cryptocurrencies to the Muslim organization.

"We are actually surprised because this fatwa is repeated again and again. Our communication patterns are no different. What do the scholars need, what application does it need, this crypto is a buying and selling transaction, we consider this a different angle, there is technology that can be used more widely. This is what we have to provide information," he added.

Reasons for the Fatwa Haram Crypto

The Tarjih Council considers cryptocurrencies illegal for two reasons. They consider crypto money to have many shortcomings when viewed from Islamic law. Furthermore, cryptocurrencies have a very pronounced speculative nature.

As is well known, Bitcoin and other crypto assets are highly volatile with unnatural increases and decreases. In addition to its speculative nature, the use of Bitcoin also contains gharar (obscurity). Their party explained, Bitcoin is just a number that does not have an underlying-asset (assets that guarantee bitcoins, such as gold and other valuables).

Apart from that, as a medium of exchange, crypto is similar to a barter system. As long as both parties are happy and sincere, and do not harm and violate the applicable rules, it is still allowed. However, if you use the sadd adz dzariah argument or prevent evil, then the use of crypto money becomes problematic.

The Tarjih Assembly considers that the standard of currency used as a medium of exchange must meet two conditions, namely being accepted by the community and ratified by the state, which in this case can be represented by an official authority like a central bank.