Indonesia’s highest Islamic institution, the country’s authority in compliance with Sharia law, According to reports, cryptocurrency holy sites have been declared and Muslims are prohibited from using them under Islamic law. The Ulema Committee of Indonesia explained that cryptocurrencies have uncertainties, stakes and harmful factors.

Indonesian Islamic law prohibits Muslims from using cryptocurrency

Indonesia’s Ulema Council (Majelis Ulama Indonesia or MUI) is the country’s highest Islamic institution and has the authority to comply with Sharia law. It is said that Announcing the use of encryption as a holy place for currency, and Islamic law prohibits Muslims from using it.

According to a Bloomberg report, Asrorun Niam Sholeh, the head of religious laws, explained after an expert hearing on the board of directors on Thursday that cryptocurrencies have elements of “uncertainty, stakes, and harm.”

However, he pointed out that if cryptocurrency can comply with Islamic teachings and show obvious benefits, then it can be traded as a digital asset or commodity.

Indonesia is the country with the largest Muslim population, with an estimated 231 million Muslims, accounting for 86.7% of the country’s population.

The Ulema Committee advises the country’s Ministry of Finance and the Central Bank on Islamic finance issues. It includes many Indonesian Muslim groups, including Nahdlatul Ulama (NU), Muhammadiyah, and smaller groups such as Syarikat Islam, Perti, Al Washliyah, Mathla’ul Anwar, GUPPI, PTDI, DMI, and Al Ittihadiyyah.

The MUI decree is not legally binding and does not mean that cryptocurrencies are banned in Indonesia. However, it may prevent Muslims from investing and preventing local institutions from issuing or providing encrypted asset services.

In October, the provincial branch of Nahdlatul Ulama, one of Indonesia’s largest Islamic organizations, also Announce A holy place for cryptocurrency under religious law.

However, the Indonesian government stated that the country Will not impose Like China, cryptocurrency is completely banned. In Indonesia, crypto assets can be traded with commodity futures, but cannot be used as currency. At the same time, the government is pushing to establish a cryptocurrency exchange before the end of the year, and Bank Indonesia has been exploring a central bank digital currency (CBDC).

What do you think of Indonesia’s Ulema Committee’s announcement of a ban on cryptocurrency for Muslims? Let us know in the comments section below.

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