HARAM CRYPTOS#halalcrypto #islamicfinance #crypto #halalinvestor According to the Commodity Futures Trading Regulatory Agency (BAPPEBTI), cryptocurrencies or crypto-assets are intangible assets in the form of digital assets that use cryptography, peer-to-peer networking, and distributed ledgers to control the creation of new entities, verify transactions, and secure transactions without the help of external parties4. Answer to @twinkletimes cryptocurrency #halalinvest #crypto #muslim #halal #islam #muslimtiktok #foryou #fyp [1] TripleA. Global data on cryptocurrency ownership 2021, October 2021. Whether cryptocurrency is actually allowed, however, is controversial. In recent months, prominent religious officials have issued fatwas warning their followers to stay away from cryptocurrencies, arguing that their wild price fluctuations and obscure origins bring them closer to gambling, which is also banned by the Quran. This view is shared by a number of scientists. Some researchers argue that cryptocurrencies are not maal, have no intrinsic function or utility, and fluctuate in value solely due to speculation11, so they are not Shariah-compliant. This view states that cryptocurrencies have no real existence, for example, the Indonesian Council of Ulema has stated that cryptocurrency is haram because they claim it has Gharar and cannot be classified as a commodity that they believe must have an underlying asset and clear value14. This research aims to assess the relevance of cryptocurrency as a currency from an Islamic perspective. From an Islamic point of view, currency has specific characteristics and requirements, such as stability and is asset-based. Cryptocurrency may not answer this because it has queries like money from an Islamic perspective. The research method used data from 23 cryptocurrency prices and related information. The result shows that cryptocurrency is highly volatile and has limits to be called « money » because it is limited and used for speculation, which is forbidden in Islam.

The research implies that Muslims would be reluctant to use cryptocurrency as currency, as transaction currency. For this reason, cryptocurrency is not expected to grow rapidly in Muslim countries. « It serves to protect people in terms of prosperity, » says Amatayakul. Many people have asked him for advice on cryptocurrency, he says. One of his former students, who is now studying in Cairo, even got into an argument with his roommate because they drove up the electricity bill by running energy-intensive software that « mines » new crypto coins or creates new ones. In Malaysia, HelloGold launched an initial offering of its gold-backed cryptocurrency in October, receiving approval from Islamic scholars from Kuala Lumpur-based Amanie Advisors. [18] Mehmet Asutay. Islamic moral economics as the basis of Islamic finance.

In Islamic finance in Europe. Edward Elgar Verlag, 2013. [2] Ehret, Todd and Hammond, Susannah. Compendium – Regulation of cryptocurrencies by country, June 2021. In terms of usage, there haven`t been many companies that directly accept cryptocurrencies. However, the number is growing and currently includes large companies such as Microsoft, Overstock, and PayPal. However, cryptocurrency owners can use a third-party crypto debit or credit card to pay with cryptocurrency at any store that accepts debit/credit cards. This can also be used for ATM withdrawals. Innovations such as the Lightning Network, which makes crypto-based micropayments easier and faster, also get additional support.

[14] Majelis Ulama Indonesia. Keputusan fatwa hukum uang kripto atau cryptocurrency, 2021. Cryptocurrency uses cryptographic principles to create a distributed, decentralized and secure information economy5. Each transaction must be validated both publicly and privately. The security of cryptocurrency ledgers is ensured by miners (for Bitcoin) who protect the network by validating transactions with the payment of a number of new cryptocurrencies and transaction fees. A large number of cryptocurrencies run on a technology called blockchain, a type of distributed ledger technology (DLT)8. DLT is a method of recording and sharing data across multiple ledgers using the same records managed and controlled by a network of distributed computer servers. The blockchain itself uses cryptography and the aforementioned algorithms to create a distributed ledger where only new data can be added and previous data cannot be deleted, creating a transparent decentralized economy.

However, it is important to point out that I cannot make a definitive judgment at this time, as there is no solid evidence that cryptocurrency is halal in Islam. OneGram has received a ruling from Dubai-based Al Maali Consulting that its cryptocurrency is in line with Islamic principles. Before discussing the decisions and opinions of cryptocurrency researchers, we will discuss what constitutes tradable wealth in Sharia law. And also, what can be called money in Sharia, as a basis for whether cryptocurrencies can be called money. Amatayakul, who also chaired the committee that advises the Islamic Bank of Thailand on Sharia law, says he is not against technological change, but the cryptocurrency world is changing so fast that he advises other Muslims to stay away for now. Today we are going to talk about what the Muslim community thinks about cryptocurrency and what they have to say about it. I was intrigued to see how, if anything, Muslims interacted with cryptocurrency. Proponents of cryptocurrencies argue that this would create a decentralized currency and payment system that would be valued solely on the basis of market demand and supply, thereby eliminating bank intermediation and the country`s influence6. It would also reduce costs and create a faster digital economy by eliminating intermediation by banks. The anonymity and privacy of cryptocurrency transactions also have appeal compared to more traditional payment methods such as debit cards. Although anonymous, the system would also be more transparent because all transactions are recorded on the network through the retrieval process.

Since the invention of Bitcoin in 2009, the cryptocurrency market has grown to a $2.87 trillion market made up of thousands of cryptocurrencies. The number of people adopting cryptocurrencies has reached over 300 million1 and is growing rapidly with global adoption growth of 881% from June 2020 to June 2021, or 2300% since Q3 20192. In Indonesia, cryptocurrency investors have reached 7 million, more than double that of equity investors, who are 2.7 million in 20203, highlighting their influence and growth. It should be noted that the importance of whether cryptocurrency is a currency or not is due to its application to the rules of forex trading and zakat16. A currency must be traded with a spot transaction in the same or a different currency, and no additions are allowed when trading in the same currency. While zakat is permanently mandatory for currencies but for assets, it is only mandatory if there is an intention to resell. Facebook`s cryptocurrency failure came after internal conflict and regulatory resistance so far, Southeast Asian countries have seen mixed measures against cryptocurrencies. Singapore, Indonesia`s neighbor, has just seen its services interrupted by the cryptocurrency exchange Huobi Global after the Chinese government`s crackdown.

According to this view, cryptocurrencies are classified as a Shariah-compliant digital asset that has economic value and can be stored and recovered11. Since cryptocurrencies are just numbers in a public ledger, there`s no reason to harass them. They believe that cryptocurrencies are a digital representation of the value that can be traded. And while cryptocurrencies have no underlying asset, cryptocurrency itself is the valuable asset11. Blogger Aysha Akter believes that « cryptocurrency has a place in the future of money that is crucial in any economy. » Khan, S.N. (2022), « The Legality of Cryptocurrency from an Islamic Perspective: A Research Note, » Journal of Islamic Accounting and Business Research, Vol. doi.org/10.1108/JIABR-02-2022-0041 This view holds that cryptocurrencies have no other use or purpose than monetary.15 Its values are determined by its characteristics as a medium of exchange and speculation, rather than by utility, hence its categorization into money. Although people use it as investments, it is still classified as currency because it is created as a peer-to-peer payment system. With regard to the lack of social agreement, it is argued that it is difficult to quantify use and acceptance in a decentralized system. Although the concerns speculation and illegal use of cryptocurrencies are considered irrelevant because they are external factors that do not determine the legality of money, but rather require regulation and control.

Mufti Faraz Adam, for example, rules Bitcoin as a currency as long as people use and exchange it15. So far, the cryptocurrency industry and blockchain technology have not only seen quantitative growth, but have also evolved to create many new features and services. If it finds global use and has a more stable value or, conversely, becomes a bursting speculative bubble, it is possible that scientists will change their minds in some way to reach a greater consensus.