According to the Indonesian Religious Council, the use of cryptocurrencies is banned for Muslims, Bloomberg reported.
National Ulema Council (MUI) stated that cryptocurrencies are considered prohibited because they have elements of uncertainty, bets, and losses. The decision was announced after the expert hearing held on Thursday. If cryptocurrency as a commodity or digital asset can comply with Shariah principles and demonstrate clear utility, then it can be traded, he added.
The Council is considered an authority on Sharia in Indonesia, which has the title of the world’s largest Muslim population. The country’s regulators, such as the finance ministry and the central bank, always work with the Council on financial matters.
Of course, the council’s decision must be in the country. cryptocurrency does not mean that trading has stopped or will stop. The decision on the status of digital currencies and financial transactions will be made by the ministry of finance.
However, the statement could deter Muslims from investing in assets and cause local institutions to reconsider their crypto holdings.
Nhadlatul Ulama (NU), one of Indonesia’s famous Islamic groups, also claimed that the use of cryptocurrencies is not religiously appropriate.
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