Indonesia's Islamic organization has issued a fatwa regarding cryptocurrency. On behalf of the Ulema Council of Indonesia, it has been said that using cryptocurrency is haram in Islam. However, it has also been said by the Islamic organization that trading of digital assets can be allowed under this. Indonesia has the largest number of Muslims in the world. On Thursday, it was said by the organization that the use of crypto as a currency is banned. But investing in it and trading of digital tokens can be done in the commodity.
Earlier it was told by the concerned ministry that the value of cryptocurrency trading in the commodity sector is currently Rs 370 trillion. By the end of the year 2020, the total trading was up to 65 trillion rupees. The number of traders has also increased from 4 million to 6.5 million.
Asrorun Niyam Soleh, the head of the Islamic organization's religious decree, said that according to Sharia law, cryptocurrency for payment is haram because it is unstable and harmful. Its use violates the law.
Trading cryptocurrency as a commodity is also against the law. The Islamic organization has called it gambling because it does not follow the rules of Islam. However, the organization currently allows trading of cryptocurrencies in which the asset is known and the profit information is given.
However, this fatwa of the organization does not mean that this currency has been legally rejected. But this fatwa of the institution can harm the investment in this sector.
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