Crypto is banned for Muslims in the world’s largest Islamic country

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The use of crypto assets as currency is prohibited for Muslims, according to the Indonesian Council of Religious Leaders.

The National Council of Ulemas, or MUI, has ruled the cryptocurrency haram or banned because it has elements of uncertainty, betting and prejudice, Asrorun Niam Sholeh, head of religious decrees, said Thursday after the council held an expert hearing.

If cryptocurrency as a commodity or digital asset can adhere to the principles of Sharia law and can show a clear advantage, then it can be traded, he added.

Cryptocurrencies such as Bitcoin have been considered haram, or banned, for Muslims in Indonesia.Credit: AP

MUI holds the authority over Sharia compliance in the country which is home to the world’s largest Muslim population, with the Ministry of Finance and the central bank consulting them on Islamic finance issues.

The government itself has supported crypto assets, allowing them to be traded with commodity futures as an investment option and pushing to set up a crypto-focused exchange by the end. of the year. Indonesia does not allow the use of crypto assets as a form of currency because the rupee is the country’s only legal tender.

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While MUI’s decision does not mean that all cryptocurrency exchanges will be halted in Indonesia, the decree could deter Muslims from investing in assets and prompt local institutions to reconsider issuing crypto assets.

The Bank of Indonesia is considering a central bank digital currency, with no decision yet announced.

Crypto transactions amounted to 370 trillion rupees ($ 35 billion) in the first five months of the year in Indonesia, still a fraction of the global market at around $ 3 trillion ($ 4.1 billion). dollars).

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