Bitcoin is apparently haram says Indonesia’s national Islamic council

Although not legally binding, the Indonesian Ulema Council made this announcement.

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Indonesia Ulema Council (MUC) is an Islamic organization in Indonesia and they have declared that cryptocurrencies are haram (Islamic term for forbidden) say the reports. They believe that Bitcoin and other cryptocurrencies do not meet Islamic criteria.

"Uncertainty, wagering, and haram" are cited as reasons for rejecting cryptocurrency, according to MUI Fatwa Commission Chairman Asrorun Niam Sholeh. After an expert MIU session, Sholeh allegedly said that cryptocurrencies such as Bitcoin must adhere to Shariah principles as a product or digital asset and demonstrate a "clear benefit."

According to Britannica Fatwa, in Islam, is “a formal ruling or interpretation on a point of Islamic law given by a qualified legal scholar (known as a mufti)”. And in Indonesia, the Ulama Fatwa Commission’s job is solving some of Indonesia's most pressing concerns including the social, political, economic, and legal ones from the perspective of Islamic law, heard testimony from the MIU about Bitcoin.

It must be said that this is not the first time cryptocurrency use is declared haram. It had previously been declared haram by a Fatwa issued by MIU’s East Java branch.

The MIU council's most recent decision is not legally binding despite the fact that it is a government-funded body. Although MUI acknowledges that the fatwa in Indonesia is not law, some sources claim that it may still be utilized as a source of "legislative inspiration." Bloomberg verifies that the decision doesn’t prevent crypto trading. Having said that, Muslims may stop investing and trading in the crypto space.

The Indonesian government has had contradicting stance regarding the crypto industry. Indonesian officials have been fans of crypto space by keeping it legitimate although in 2017 they had previously put a blanket ban on cryptocurrency payments.

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Bitcoin

Cryptocurrency Regulations

Indonesia

Tags

Bitcoin

Cryptocurrency Regulations

Indonesia