Highlights of the story
- The National Ulema Council said it was haram
- Indonesia has not yet banned it
The National Ulema Council of Indonesia (MUI) has declared cryptocurrencies haram. MUI believes it has uncertainty and risks. After a meeting of experts held by the council on Thursday, Azrun Niam Sholay, head of religious rules, issued a proclamation of compliance. However, he has put a condition.
Azrun Niam Sholay, head of religious regulation, said cryptocurrency could be traded as a commodity or digital asset if it showed clear benefits in accordance with Sharia principles. The MUI, which oversees Sharia compliance in the country, advises the Ministry of Finance and the Central Bank on Islamic affairs.
Well, the Indonesian government itself is in favor of crypto assets, which allows it to trade with commodity futures as an investment option and insists on setting up crypto-centric exchanges by the end of the year. However Indonesia does not allow the use of crypto assets as currency.
However, the MUI’s decision does not mean that all cryptocurrency trading in Indonesia will cease. The government itself can stop Muslims from investing in crypto and reconsider giving crypto assets to local companies. Meanwhile, Bank of Indonesia Central Bank is considering introducing digital cryptocurrency.
Crypto transactions in Indonesia in the first five months of this year amounted to 370 trillion rupees ($ 26 billion), which is still about $ 3 trillion part of the global market. The United Arab Emirates has allowed crypto trading in the Dubai Free Zone, while Bahrain has supported crypto assets since 2019.
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