The use of crypto is not Shariah compliant and should be banned for Muslims, Indonesia's religious authority says
- The use of
cryptoas a currency does not comply with Islamic law, Indonesia's religious authority said.
- The nation's top
Muslimclerical body ruled that cryptos are haram, or banned.
- But cryptos as commodities can be traded if they can exhibit clear benefits, the body added.
The use of
Bloomberg first reported that the National Ulema Council, the nation's top Muslim clerical body, ruled that cryptocurrencies are haram, or banned, due to their element of uncertainty, wagering, and harm.
When it comes to cryptoassets as commodities, these can be traded if they can exhibit clear benefits and can abide by the principles of
The council, also known as Majelis Ulama Indonesia or
It remains to be seen how this new pronouncement will affect crypto trading in the country of over 270 million people. Decrees from the MUI are nonbinding but could affect the way Muslims perceive digital assets.
The government for its part has allowed digital asset trading along with commodity futures as an investment option.
The total value of crypto trading in Indonesia has reached around $25.96 billion from January to May this year, according to the trade ministry, cited by Reuters.
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