Crypto is banned for Muslims in this country

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Use of crypto assets as currency prohibited for Muslims in Indonesia

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.

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.

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.

(Except for the title, this story was not edited by NDTV staff and is posted from a syndicated feed.)

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