Fez – Indonesian council of religious authorities announced that using crypto assets is prohibited for Muslims because of its speculative nature.
Asrorun Niam Sholeh, head of religious Indonesian National Ulema Council (MUI) has declared cryptocurrency as haram, or forbidden, since it has aspects of uncertainty and wagering.
He stated that cryptocurrencies as a commodity or digital asset can’t be exchanged unless it conforms to the Shariah teachings and provides a demonstrable advantage.
The body sets laws in compliance with its interpretation of the Shariah in the world’s most populous Muslim country. The finance ministry and central bank are counseling them on Islamic finance matters.
The Indonesian government has been a proponent of cryptocurrency. They allowed for their trading alongside commodities futures as an investment option and pushed for the establishment of a crypto-focused exchange by the end of the year.
Indonesia does not permit the usage of crypto assets as a form of currency because the rupiah is the country’s only legal tender.
The decree of the MUI does not deny cryptocurrency trading in the country, but prohibits Muslims from owning or investing in the assets.
Bank Indonesia has been considering a central bank digital currency, although no decision has been made as of yet.
In Indonesia, crypto transactions increased to 370 trillion rupiah ($26 billion) in the first five months of 2021. This sum represents only a small portion of the worldwide market, which is estimated to be worth over $3 trillion.
