Is Cryptocurrency Halal? A guide to Cryptocurrency for Muslims – Crypto assets have suddenly become in demand for investment. Many people end up buying crypto in droves because the fluctuations are very fast. However, there are still those who question whether crypto is halal or not to be used as an investment instrument?
This problem has also made the Ulema Council (MUI) open its voice regarding crypto assets. They said that crypto is a legal asset to be owned by anyone. However, these assets can become haram.
So, what is the basis for MUI mentioning the fatwa? Check out the explanation below!
Is Cryptocurrency Halal?
Cryptocurrency has been used since 2009 as a digital currency. Some countries already use it for many things. However, it is different from Indonesia which adheres to a clear understanding of Islamic religious law.
However, cryptocurrency ownership can still be lawful for investment purposes. MUI explained that crypto ownership is still lawful to own as an asset. Apart from that, crypto assets also still meet the sil’ah requirements or can be used to meet human needs and have benefits.
These conditions also provide freedom for cryptocurrency to be traded. Similar to gold or stocks, you can still buy it when the price is down and sell it when the price is high.
Crypto Assets Become Illegal
Unfortunately, crypto is defined as a hopeful asset as well. MUI considers that crypto assets contain gharar and dharar in them. Therefore, this asset cannot be used as a medium of exchange or buying and selling.
Gharar means uncertainty in the transaction. Of course this does not meet the provisions in sharia to be used as a medium of exchange. It could be that one of the parties using crypto suffers a loss when making a transaction.
While dharar means assets that can cause damage, loss, or an element of persecution in them. MUI believes that cryptocurrencies can result in the transfer of ownership rights in a vanity.
Not only that, crypto assets as a medium of exchange and buying and selling are also against Law no. 7 of 2011 which explains legal tender in Indonesia. All buying and selling transactions that take place in the Republic of Indonesia can only use rupiah currency. In line with Bank Indonesia Regulation No. 17 of 2015 which regulates the obligation to use rupiah within the territory of the Unitary State of the Republic of Indonesia (NKRI).
Legal Crypto Assets
Crypto asset trading is still allowed in Indonesia. This has been regulated and supervised by the Commodity Futures Trading Regulatory Agency (Bappebti) of the Ministry of Trade. CoFTRA has stated it in CoFTRA Regulation No. 2 of 2019 concerning the implementation of the Physical Commodity market on the Futures Exchange.
In other words, you can still buy cryptocurrency as an investment. There are already many choices of crypto assets that can be obtained in Indonesia. According to Commodity Futures Trading Regulatory Agency Regulation No. 7 of 2020 concerning Establishment of Crypto Asset Lists, there are 229 legal cryptocurrencies in Indonesia.
1. Bitcoin 2. Ethereum 3. Tether 4. Xrp/ripple 5. Bitcoin cash 6. Binance coin 7. Polka dots 8. Chainlink 9. Litecoin 10. Bitcoin sv 11. Litecoin 12. Crypto.com coin 13. Usd coin 14. T them 15. ron 16. Cardano 17. Tezos 18. Stellar 19. Neo 20. No 21. Cosmos 22. Wrapped bitcoin 23. Iota24. Vechain
25. Dash 26. Ethereum classic 27. Yearn.finance 28. Theta 29. Binance usd 30. Omg network 31. Maker 32. Ontology 33. Synthetix network token 34. One 35. Uniswap 36. Dai 37. Doge coin 38. Algorand 39. True usd 40. Bittorrent 41. Compound 42. 0x 43. Basic attention token 44. Kusama 45. Ok blockchain 46. Waves
47. Digibyte 48. Icon 49. Qtum 50. Paxos 51. standard 52. Ren protocol 53. Loopring 54. Ampleforth 55. Zilliqa 56. Kyber network 57. Augur 58. Lisk 59. Decred 60. Bitshares 61. Bitcoin gold 62. Aragon 63. Elrond 64. Coin engine 65. Band protocol 66. Terra 67. Balancer 68. Nano 69. Swipe 70. Solana 71. Bitcoin diamond
72. Dfi.money 73. Decentralized 74. Avalanche 75. Cash 76. Golem 77. Quant 78. By apartment 79. Serum 80. Iexec rlc 81. Just 82. Verge 83. Pax gold 84. Matic network 85. Kava 86. Komodo 87. Steem 88. Aelf 89. Phantom 90. Horizon 91. Ardor
92. Hive 93. Enigma 94. V. Systems 95. Z coin 96. Wax 97. Stratis 98. Inc 99. Ark 100. Syscoin 101. Power ledger 102. Stasis euro103. Harmony 104. Where x 105. Solve.care 106. Gxchain 107. Coti 108. Origin protocol 109. Xinfin network 110. Btu protocol 111. Dad 112. Orion protocol 113. Cortex 114. Sandbox 115. Hash gard 116. Bora 117. Walton Chain 118. Wazirx 119. Polymath 120. Request 121. Pivx 122. Coti 123. Fusion 124. Dent
125. Airswap 126. Civic 127. Metal 128. Standard token protocol 129. Mainframem 130. 12ships 131. Lambda 132. Function x 133. Cred 134. Ignis 135. Adex 136. Moviebloc 137. Groestlcoin 138. Factom 139. Nexus 140. Lbry credits 141. Gemini dollar 142. Einsteinium 143. Vidcoin 144. Nkn 145. Go chain 146. Cream finance
147. Medibloc 148. Fio protocol 149. Nxt, Aergo 150. High performance blockchain 151. Descartes 152. Tenx 153. Siacoin 154. Raven coin 155. Status 56. Storj 157. Electronium (etn) 158. Aurora 159. Orbs 160. Loom network 161. Storm 162. Vertcoin 163. Ttc 164. Metadium 165. Puma Pay 166. Nav coin 167. Dmarket 168. Spendcoin 169. Language 170. Burst 171. Gift 172. Sentinel protocol 173. Quantum resistant ledger
174. Digix gold token 175. Blocknet 176. District 0x 177. Propy 178. Eminer 179. Ost 180. Steam Dollar 181. Particl 182. Data 183. Sirinlabs 184. Tokenomy 185. Digital notes 186. Abyss token 187. Cake 188. Veriblock 189. Hydro 190. Vibrate 191. Rupiah token 192. Vexanium 193. Global social chain 194. Ambrose 195. Refereum 196. Crown 197. Daex 198. Cryptaurus 199. Spacechain 200. Expanse 201. Sumokoin 202. Honest 203. Auroracoin
204. Water x 205. Smartshare 206. Exclusive 207. Cosmo coin 208. Aidcoin 209. Adtoken 210. Play game 211. Lunacoin 212. Stakes 213. Klaytn 214. Flamingo 215. Wing 216. Bella protocol 217. Mil. k 218. Bakery token 219. Lyfe 220. Ionomy limited 221. Smart chain solution 222. Kryptokit 223. Eautocoin 224. Quantum 225. Bankex
226. Chaincoin 227. Hara coin 228. Venus protocol 229. Alpha finance
Halal Crypto Investment Tips
Of course, you need to choose the best trusted place to buy crypto assets. Then, do the steps below:
1. Only use cold money
High fluctuations in crypto investment also need to be watched out for. Therefore, you should only use cold money to start investing in this instrument. Cold money is personal money that is obtained from income after all needs are met. Avoid going into debt for this one investment, OK!
2. Set for a long term investment
Changes in crypto assets are very fast, both up and down. Therefore, you need to set a long-term investment if you want to use crypto assets. That way, the changes that occur do not really affect the portfolio that is owned.
3. Portfolio diversification
There’s nothing wrong with you buying more than one crypto asset for investment. A variety of crypto assets that have high, medium and medium risks. That way, the risk of loss will be easily suppressed.
4. Manage risk well
You could say investing in crypto is not very erratic. Therefore, you need to manage risk well in various ways. Managing risk can use other investment instruments that are minimal in risk. Call it deposits or gold.
5. Buy routinely
In investing in crypto, you also need to routinely manage it. This means that you have to add crypto assets within a certain period of time, every one or two months. That way, the development of crypto assets can be better from time to time.
That’s an explanation of whether crypto investment is halal or haram that you need to know. Well, increase your knowledge about investing more before starting. That way, you are not wrong in taking steps. Choose for the best mutual fund investment. Happy investing!