OJK Bans Indonesian Financial Services from Facilitating Crypto Trade All

KOMPAS.com – Financial Fervices Authority (OJK) strictly prohibits the interference of financial service institutions in all forms of cryptocurrency asset trading activities (cryptocurrency) in Indonesia.

Chairman of the OJK Board of Commissioners, Wimboh Santoso explained that the ban includes actions such as using, marketing, and facilitating buying and selling activities. cryptocurrency.

The ban was conveyed through the official OJK Indonesia Instagram account @ojkindonesia.

Also read: MUI Sets Crypto Haram as Currency for Buying and Selling

“OJK has strictly prohibited financial service institutions from using, marketing, and/or facilitating crypto asset trading,” wrote the @ojkindonesia account.

Currently, all types of supervision and regulation of crypto assets are carried out by the Commodity Futures Trading Regulatory Agency (CoFTRA).

Although not involved with all the regulations applied to crypto assets in Indonesia, OJK also appeals to the entire community to be more familiar with the risks that crypto assets can cause.

This is because crypto assets are a type of commodity that has erratic fluctuations in value, so its value can rise and fall suddenly.

In addition, the OJK has also warned the public to be aware of ponzi schemes under the guise of crypto investment.

Not recognized by Bank Indonesia

In a separate statement, Bank Indonesia (BI) some time ago also banned crypto assets as a medium of exchange or transaction tool.

Also read: This is Bank Indonesia’s official stance on Bitcoin

Although it is forbidden to be traded, however cryptocurrency still allowed to be used as a form of investment instrument.

“Crypto is not a legal means of payment. And we have banned all institutions that have obtained permission from Bank Indonesia to serve crypto. And we are constantly monitoring,” said BI Governor Perry Warjiyo at the Commission XI Working Meeting of the Indonesian House of Representatives, Thursday (25 /11/2021).

Perry explained that the main reason the central bank did not accommodate crypto assets was because the fundamental form of the assets assessed was still unclear.

Because it is not regulated by an institution, cryptocurrency have unclear ownership and price movements.

“Who’s holding supply, but demand from all over the world. So we also don’t know the valuation,” Perry explained.

Muhammadiyah and MUI ban crypto assets

The Tarjih Council and the Tajdid PP Muhammadiyah issued a fatwa on cryptocurrencies from all aspects, both as a transaction and as an investment vehicle.

Muhammadiyah views crypto assets as having a very obvious speculative nature. This is one of the shortcomings of crypto assets when viewed according to Islamic law.

“The Tarjih and Tajdid Councils have issued a fatwa on the prohibition of crypto (crypto money law) both as an investment activity and a medium of exchange. The reason is because there is a tendency to contain an element of uncertainty (gharar), gambling (maisir), “wrote the official page of Muhammadiyah.or.id.

Also read: Muhammadiyah Prohibits Cryptocurrencies for Investment and Payment Instruments

The Indonesian Ulema Council (MUI) also conveyed the same thing. Before Muhammadiyah issued a haram fatwa, MUI had first forbidden the use of cryptocurrency as a means of payment.

As a result, the MUI has determined that cryptocurrencies are officially prohibited from being used as a medium of exchange or investment, but they are still allowed to be owned.

Muhammadiyah and MUI seem to agree that crypto assets contain gharar and dharar. However, MUI specifically assesses the existence of elements of qimar aka gambling on crypto assets.

On the other hand, cryptocurrency also does not meet the requirements of buying and selling in sharia, especially physical form and definite value.

“Cryptocurrency as a digital commodity/asset it is not legal to be traded because it contains gharar, dharar, qimar and ineligible sil’ah in a way syar’i, namely there is a physical form, has value, the amount is known for sure, property rights and can be handed over to the buyer,” explained MUI.

As for gharar itself has the meaning of uncertainty in the transaction due to the non-fulfillment of sharia provisions in the transaction. As a result, there is a risk of loss.

Whereas dharar is a transaction that can cause damage, loss, or there is an element of persecution. Dharar considered to be able to result in a vanity transfer of ownership rights.

Apart from religion, MUI also considers crypto assets to be contrary to Law (UU) Number 7 of 2011 and Bank Indonesia Regulation Number 17 of 2015.

“Use cryptocurrency as a legal currency, it is haram, because it contains gharar, dharar and is contrary to Law number 7 of 2011 and Bank Indonesia Regulation number 17 of 2015, “MUI wrote in its fatwa.

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