CRYPTOCURRENCY LAW: A STUDY OF FIQH AND FATWAS ABROAD AND A COMPARISON OF FATWAS IN INDONESIA

Abstract

The discussion of fiqh and fatwa studies on cryptocurrency is still widely discussed both in Indonesia and abroad. Differences of opinion regarding cryptocurrencies are also often found so it is interesting to discuss. This research aims to find out the legal istinbãth method used by fatwa institutions in determining the cryptocurrency issue. This research is a qualitative study with library data collection techniques. The Malaysian state requires a report on every transaction, and State Bank of Malaysia is also not fully responsible for the use outside the crypto wallet service provider. Middle Eastern fatwa institutions such as in Egypt, Turkey, and Palestine prohibit cryptocurrencies because they are illegal, there is no direct supervision from the government or authorities so that money laundering can occur, and cryptocurrencies can also cause gharar. Fatwa institutions in Indonesia differ in determining the law of cryptocurrency. MUI's fatwa prohibits cryptocurrency according to government regulations and the sad al-dzariah legal istinbãth method, as well as the Muhammadiyah Tarjih Council which also prohibits cryptocurrency. The East Java PWNU Bahtsul Masail Institute prohibits cryptocurrency, while the Yogyakarta Special Region PWNU Bahtsul Masail Institute allows it, both institutions use the ilhãqi method because they refer to classical and contemporary books.