Indonesian Islamic organization issues new fatwa against crypto use By Cointelegraph

The Tarjih Council and the Central Executive Tajdid of Muhammadiyah, one of the largest non-government Islamic organizations in Indonesia, issued a new fatwa against cryptocurrency use, deeming it haram, or unlawful, for Muslims.

The fatwa, a ruling on the point of Islamic law, was issued on Tuesday and pointed towards two critical issues with cryptocurrencies that make them illegal as an investment tool and a medium of exchange under Islamic laws:

1. The speculative nature of cryptocurrencies makes them imperfect as an investment tool. The crypto tokens are believed to contain “gharar” (obscurity) which means they are not backed by anything like gold, which makes them unlawful under Islamic laws.
2. Cryptocurrencies don’t meet the standards of Islamic barter or medium of exchange laws which require them to be legal tender and accepted by both parties.