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Back in today’s discussion, cryptocurrency market news where we discuss the market of crypto. 


Result of Hasil Ijtima Ulama Komisi Fatwa Majelis Ulama Indonesia (MUI) Discussion 

The Fatwa Commission of the Indonesian Ulema Council (MUI) forbids the use of cryptocurrencies or cryptocurrencies and calls them illegal for trading. Chairman of the MUI Fatwa Commission named Asrorun Niam Soleh said there were three legal dictums explaining that cryptocurrencies were forbidden as currency. 


What Is Dictum? 

A dictum is a legal proclamation from the government or higher rank organizations. 

Niam said the results of the ulama’ meeting has determined that the use of crypto currency as a legal currency is haram because it contains the element of gharar and dharar and is contrary to Law number 7 of 2011 and Bank Indonesia Regulation number 17 of 2015. 


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What Is Gharar

Gharar is an Arabic word meaning deception, uncertainty, hidden things and risks. See, Islam declares this as haram due to the fact to protect its believer from things that can be harmful for them. Furthermore, cryptocurrency as a commodity or digital asset is also illegal to trade because it contains gharar, dharar, qimar.


What Is Qimar

Qimar is like gambling situation where a winner wins something and the loser loses something. It is worse than losing because there are actual and bigger consequences to it. 


However, for the type of crypto as a commodity or asset that meets the requirements as sil’ah and has an underlying and has clear benefits, said Niam, it is legal to be traded.


Up to this point, the Indonesian government has also refused to accept cryptocurrency as a form of payment as an alternative to rupiah. However, cryptocurrency trading is governed by the Ministry of Trade’s Commodity Futures Trading Supervisory Agency (CoFTRA) in CoFTRA Regulation Number 2 of 2019 concerning the Implementation of the Physical Commodity Market on the Futures Exchange. The Hasil Ijtima Ulama Komisi Fatwa Majelis Ulama Indonesia and Fatwa Commission’s Ijtima Ulama met in Jakarta for three days, debating 17 issues that have been divided into three groups. In addition to regulating crypto law, several things that are discussed in the Ijtima Ulama MUI Fatwa Commission include the criteria for blasphemy, regarding jihad and the caliphate, reviewing taxes, customs and levies.

In addition, it is also about elections and local elections, land distribution for equity and welfare, cryptocurrency law, online marriage contract law, and online loan law.


Why Is This Matter Discussed By Them And Does It Matters?
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The fatwa was also announced after the people of the country began to show deep interest in the digital currency. Indonesia’s domestic exchange also saw strong growth in cryptocurrencies with millions of people engaging in the trade. Earlier, there were reports that the Indonesian government did not ban the use of cryptocurrency, but vowed that it would not be used for illegal activities. Indonesian Investment Minister Muhammad Luthfi said although the government did not ban cryptocurrencies, the relevant laws would be tightened.  


What are your thoughts regarding this? Did you invest in cryptocurrency? If so please comment on your experience so far. 


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