Indonesian National Islamic Council reportedly declared Bitcoin haram

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The National Council of Ulemas (MUI), Indonesia’s leading Islamic academic body, reportedly found cryptocurrencies like Bitcoin (BTC) to be haram, or prohibited, by Islamic principles.

Asrorun Niam Sholeh, chairman of the MUI Fatwa Commission, confirmed religious authorities’ rejection of cryptocurrencies due to alleged elements of uncertainty, betting and prejudice.

For the MIU to approve crypto trading, cryptocurrencies like Bitcoin must meet Sharia guidelines as a commodity or digital asset and show a clear advantage, Sholeh reportedly said following an expert hearing from the MIU.

MIU discussed Bitcoin as part of the Ulama Fatwa Commission, which is designed to address some of Indonesia’s biggest social, political, economic and legal issues through the prism of Islamic law.

The East Java branch of MIU previously issued a fatwa, formal ruling or interpretation on an Islamic point of law given by a qualified lawyer declaring the use of the haram cryptocurrency at the end of October.

Although MIU is a government-funded organization, the council’s latest decision would not be legally binding. Although the MUI admits that the fatwa is not a law in Indonesia, it can still be used as a source of legislative inspiration, according to some sources.

According to Bloomberg, MUI’s latest decision does not mean that all crypto exchanges will be stopped in Indonesia. However, the council could deter Muslims from investing in crypto and prompt local institutions to reconsider issuing crypto assets.

Related: Indonesia Leads Global Spike in Crypto Interest

The news comes shortly after Bitcoinbriefly broke the $ 69,000 mark for the first time in history on Wednesday.

The Indonesian government has taken a mixed stance on crypto regulation. Despite the general ban on cryptocurrency payments in 2017, local authorities preferred to keep cryptocurrency trading legal. In August, local crypto exchange Pintu raised $ 35 million from some of the biggest investors in the crypto and blockchain industry.

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