• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
No Result
View All Result
Breaking News: Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback
crypto Indonesia

World’s Largest Islamic Country, Indonesia Forbids Crypto Trading

anushsamal by anushsamal
1 year ago
in Crypto
Reading Time: 3 mins read
Advertisement

It doesn’t come as a surprise to many as Islamic societies are known to label cryptocurrency trading as a form of “Haram”. Many Islamic organisations in the past have condemned the trading of digital assets such as cryptocurrency and even non-fungible tokens. Recently, the Tarjih and Tardid Council of Muhammadiyah also issued a similar memorandum stating that “Tarjih’s fatwa stipulates that cryptocurrencies are illegal both as an investment tool and as a medium of exchange,”. A fatwa implies that the currency is tagged as unlawful for the community.

The particular Islamic organisation, the Tarjih Council and the Central Executive Tajdid of Muhammadiyah have precisely provided a few arguments which validated this particular decision. The Islamic council stated that the use of cryptocurrencies is unlawful or illegal as it accounts for “gharar” and “dharar”. The two aforementioned terms basically point towards cryptocurrencies carrying elements of ‘speculation’. The fatwa quoted “This speculative nature and gharar is forbidden by the Shari’a as the word of God and the hadith of the Prophet SAW and does not meet the values ​​and benchmarks of Business Ethics according to Muhammadiyah.”

The Expository Argument Presented In The Fatwa

The Fatwa primarily provided two crucial points of contention, the most important being the speculative and volatile nature of the asset. The other issue with cryptocurrencies is that the asset doesn’t tick the standards of Islamic barter, i.e medium of exchange. The unreliability of crypto has therefore been condemned by the Islamic Council.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.
No Deposit 40 FREE SPINS at Wild.io on SIGN UP. Wheel of fortune, daily bonuses, 10 BTC in prizes monthly! Start Playing Now!

Related Reading | HIFO: The Tax Loophole That Could Be Helping Bitcoin Investors This Tax Season

The Council also expressed concerns regarding the legitimacy of the currency as Bitcoin and other cryptocurrencies still haven’t been recognised as currency or a medium of exchange backed by an underlying asset such as gold. The Islamic fatwa underlines these ideas that since crypto is a dynamic asset, it cannot be considered as a viable investment.

Any asset that is prone to speculation and fluctuation will be considered ‘Haram’. The other principles also points towards illegal activities which are conducted with the help of cryptocurrencies. The digital asset also has a tendency to be used for gambling purposes, additionally crypto isn’t a tangible asset making it another reason why the Islamic community forbids the same.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

TOTAL_2022-01-20_14-16-10

The crypto industry's growth has attracted a lot of negative attention | Source: TOTAL-CRYPTOCAP on TradingView.com

How Does Fatwa Affect Cryptocurrency Trading In Indonesia

The Indonesian Ulema Counci (MUI) earlier had insisted on a similar ban last year November. The MUI however, remained open to accepting crypto if the same abode by Sharia tenets. The other Islamic organisation that declared cryptocurrency ‘Haram’ was Nahdlatul Ulama making Muhammadiyah the third most prominent Islamic organisation to label the asset same. The Sharia law encompasses the idea that the digital asset has to be a trading commodity and not just a form of investment and transaction. The Commodity Futures Trading Regulatory Agency decided to look into the same, therefore, suggesting that cyptocurrecy trading would continue to operate in Indonesia.

Related Reading | European Markets Regulator Urges The EU To Ban Proof-of-Work Bitcoin Mining

Indonesia of late dealt with a couple of bans owing to religious concerns, despite the same Indonesian market was optimistic about crypto adoption. Crypto transactions zoomed up in the country and recorded close to $9.8 billion in asset’s transaction. This development signalled that in 2021, there has been a 1,222% appreciation in numbers as compared to 2020.

In accordance to the same, reportedly there were 11.2 million crypto investors as seen at the end of last year which is again a massive 180% jump compared to 2021. Therefore, it is safe to conclude that another fatwa won’t dull the asset’s popularity among Indonesians.

Featured image from iStockPhoto, Charts from TradingView.com
Tags: banbitcoin indonesiacryptocurrencyFatwaindonesiaNFT
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
anushsamal

anushsamal

Related Posts

Crypto Price Manipulation Binance

Coinbase Exec Accuses Binance Of Crypto Price Manipulation

6 days ago
XRP vs Cardano ADA

XRP Vs. Cardano (ADA), Which Is The Better Investment In 2023?

1 week ago
Frax Finance FXS

Ethereum-Based Frax Finance (FXS) Is Up 64%, Is There Still Opportunity?

2 weeks ago
Lazarus Group

Lazarus Group Transfers $64M ETH From Harmony Bridge Hack

2 weeks ago
FTT

FTX’s FTT Token Spikes 43%, A Revival In The Works?

2 weeks ago
Ripple XRP

Crypto Market Will See A Bloodbath If Ripple Loses To SEC, Gasparino Says

3 weeks ago

Premium Partners

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
Metaspins

Metaspins

Review · Visit
Coinplay

Coinplay

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
Vave

Vave

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
Coinplay

Coinplay

Review · Visit

BudBlockz’s 220% Growth Puts It Ahead of Dogelon Mars and Floki Inu

January 28, 2023

MATIC Gains Over 20% As Polygon Network Records Biggest Whale Transaction Of 2023

January 28, 2023

Connecting the dots on $PAW. Is Ryoshi back?

January 28, 2023

Cardano’s (ADA) first native stablecoin will launch next week, Binance (BNB) Moved $346M for the Defunct Exchange Bitzlato, Snowfall Protocol (SNW) brings in massive 500% profits to investors

January 28, 2023

Cardano (ADA) Leads Crypto Dip as Market Sheds $27B Overnight, DMM Bitcoin starts handling Polygon (MATIC), Less than 7 days remain to Snowfall Protocol’s (SNW) launch

January 28, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.