Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Indonesia’s national Islamic council outlaws cryptos, labels them haram

Published 11/13/2021, 05:17 AM
Indonesia’s national Islamic council outlaws cryptos, labels them haram
BTC/USD
-

The National Ulema Council (MUI), which is Indonesia’s top Islamic scholarly body, has reportedly declared cryptocurrencies like Bitcoin (BTC) to be haram (forbidden) according to Islam law.

The chairman of MUI’s Fatwa Commission, Asrorun Niam Sholeh, confirmed that the religious authority does not accept cryptocurrencies due to alleged elements of “uncertainty, wagering, and harm.”

According to a Bloomberg report, Sholeh said cryptocurrencies like Bitcoin need to abide by Shariah guidelines as a commodity or a digital asset and show a “clear benefit,” before crypto trading can be endorsed by the MUI.

Bitcoin was one of the subjects discussed at the Ulama Fatwa Commission. The commission is designed to address Indonesia’s biggest social, political, economic, and legal concerns through the lens of Islamic law.

In late October, the MIU’s East Java branch made a fatwa (formal ruling or interpretation on a point of Islamic law given by a qualified legal scholar), labeling the use of cryptocurrency haram.

Although the MUI is a government-funded organization, its latest decision is not in line with any legislation. According to some sources, the fatwa can be used as a source of “legislative inspiration,” even though the MUI admits it is not a law in Indonesia.

Bloomberg stated that the MUI’s latest decision doesn’t necessarily mean that all crypto trading will be suspended in Indonesia. However, the council could prohibit Muslims from dabbling into crypto and also cajole local institutions into reconsidering the issuance of crypto assets.

The Indonesian government has not been straightforward with its dealings with cryptocurrencies so far. The local authorities decided to allow crypto trading despite restricting crypto payments back in 2017.

Continue reading on BTC Peers

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.