Indonesia's Islamic authority explains cryptocurrency Haram, forbidden for Muslims - regulation
Indonesia's Islamic authority explains cryptocurrency Haram, forbidden for Muslims - regulation
Indonesia's top Islamic body, the authority of the country for compliance with Sharia, has reportedly explained the cryptocurrency Haram, which is prohibited for Muslims under Islamic law. The Indonesian Ulema Council explained that crypto contains elements of uncertainty, betting and damage.
cryptocurrency is prohibited for Muslims under Islamic law in Indonesia
Indonesia Ulema Council (Majelis Ulama Indonesia or Mui), the leading Islamic body of the country, which has the authority for compliance with Sharia, has supposedly explained the use of crypto as a currency Haram, which according to Islamic law for Muslim is prohibited.
Asrorun Niam Sholeh, head of religious decrees, said on Thursday, after the council had held an expert hearing that cryptocurrency had elements of "uncertainty, bets and damage", reported Bloomberg.
Indonesia, the country with the largest Muslim population, has an estimated 231 million Muslims, which is 86.7% of the country's population.
The Ulema Council advises the Ministry of Finance and the Central Bank of the State on Islamic financial 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, Gupi, Ptdi, DMI and Al Ittihadiyyah.
The MUI decre is not legally binding and does not mean that cryptocurrency is prohibited in Indonesia. However, it could prevent Muslims from investing and holding local institutions from issuing or providing services in crypto-assets.
In October a provincial branch of one of the largest Islamic organizations in Indonesia, Nahdlatul Ulama, similar to explains cryptocurrency haram according to religious law.
The Indonesian government, however, pointed out that the country impose a complete ban on cryptocurrency, as China did. Crypto-assets may be traded in Indonesia alongside raw material futures, but cannot be used as a currency. Meanwhile, the government is pushing to set up a crypto exchange by the end of the year, and Bank Indonesia examines a digital central bank currency (CBDC).
What do you think that the Indonesian Ulema Council declares Haram cryptocurrency for Muslims? Let us know in the comment area below.
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