Indonesia’s Religious Leaders Say Crypto is Illegal for Muslims

Indonesia’s council of religious leaders has declared that cryptocurrencies are illegal for Muslims, bringing yet another contradiction regarding cryptos in Islam.

Crypto is Illegal for Muslims

The National Ulema Council (MUI) in Indonesia has ruled that cryptocurrencies are illegal for Muslims. The council deemed cryptocurrencies as Haram and, as such, banned Indonesian Muslims from using them.

Indonesia is one of the leading Islamic countries in the world, with more than 237 million Muslims living in the country. Asrorun Niam Soleh, head of religious decrees, pointed out that cryptocurrencies could be traded as commodities if they abide by Shariah law and demonstrate clear benefits.

The head of religious decrees said the decision was reached after the council held a meeting earlier this week. He stated that if cryptocurrency as a commodity or a digital asset can abide by Shariah’s tenets and can show a clear benefit, then there is no problem in using it.

The MIU holds the authority in terms of Shariah compliance in the country. This ruling is a huge one as Indonesia has the highest number of Muslims globally. The finance ministry and central bank consults the MIU regarding Islamic finance issues.

Cryptocurrencies are Legal in Indonesia

Although the MIU has come out against cryptocurrencies, they still remain legal in Indonesia. The government is supportive of cryptocurrencies, allowing its citizens to trade them alongside commodities as investment options.

The government is also working on establishing a crypto-focused exchange by the end of the year. However, the government doesn’t recognize cryptocurrencies as legal tenders but sees them as commodities and digital assets.

The crypto market has retraced following the rally experienced earlier this week. At the time of writing, Bitcoin is trading just below $65k, down by more than 4% over the past 24 hours. The leading cryptocurrency reached an all-time high above $69k earlier this week, but the market is currently correcting following the rally.