Wednesday, May 29, 2024

Fatwa issued against cryptocurrencies in Indonesia

Nahdlatul Ulama, a religious organization in Indonesia, has issued a fatwa against cryptocurrencies based on the laws of Islam. The fatwa states that the use of digital currencies for transactions are ‘haram’ or forbidden under Islamic laws. The fatwa was preceded by a heated debate that was held by the organization on October 24. The conclusion of the debate was this – use of cryptocurrencies may go on to undermine financial transactions’ legality.

During the debate, the use of cryptocurrencies for committing fraud was also discussed in-depth. The website of the East Java branch of the organization published an announcement that stated that cryptocurrencies could never be legalized as per Islamic law or Sharia. The announcement also mentioned that during the debate, the participants could not find any benefits of cryptocurrencies from an Islamic point of view. According to the announcement, a cryptocurrency expert also happened to participate in the debate.

This fatwa came only a few days after the Indonesian government announced that it doesn’t have any plans of imposing any cryptocurrency bans. Muhammad Luthfi, the country’s Minister of Trade, spoke to local media on the issue. He stated that Indonesia doesn’t have any intention of following in China’s footsteps. Earlier this year, the Chinese government launched a major offensive against crypto mining and trading operations in the country.

Despite the fatwa, Indonesia remains one of the countries that’s adopting cryptocurrencies at a high rate. According to Indonesia’s Futures Exchange Supervisory Board, crypto trading skyrocketed during the January – May period, recording a 40% rise.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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