PWNU East Java Issues Fatwa on Illegal Cryptocurrency, What’s the Basis?

TEMPO.CO, Jakarta – The East Java Nahdlatul Ulama (PWNU) Regional Board issued a fatwa that the use of cryptocurrency or digital currency that is guaranteed by cryptography as a means of transaction is haram. This was decided in a discussion or bahtsul masail which was held on Sunday last week, October 24, 2021.

In the activity, which also brought representatives from the Nahdlatul Ulama (PCNU) Branch Management and several Islamic boarding schools throughout East Java, it was decided that the law on the use of crypto assets as a means of transactions was unlawful. The reason is, this will lead to a number of possibilities that can eliminate the legality of the transaction.

“The participants of bahtsul masail have the view that even though crypto has been recognized by the government as a commodity material, it still cannot be legalized by sharia,” said Kiai Azizi Chasbullah, as mushahih, as quoted from the NU East Java website, Thursday, October 28, 2021.

The alumnus of the Lirboyo Islamic Boarding School, Kediri, East Java, said that one of the considerations for the fatwa decision was that there was a risk of fraud in the transaction. “Based on several considerations, including the existence of fraud in it, it is considered unlawful,” he said.

In the discussion, the participants of the deliberation or musyawirin also considered that cryptocurrency has no benefits in terms of sharia as described in the books of jurisprudence. This was justified by one of the team of experts cryptocurrency who was invited by the East Java PWNU to explain the chronology of the correct practice in the use of cryptocurrency.