Religious leaders in Indonesia banned Muslims from using cryptocurrency Digital money has been recognized as haraam, since its value depends on unpredictable factors, writes Reuters, citing the head of the department of religious orders of Asrorun Niam Sholeh.
However, MUI's stance on digital assets is ambiguous. On the one hand, Asrorun calls the trading of cryptocurrency as a commodity illegal and compares it to gambling, since digital money has no physical form and no fixed value. At the same time, MUI allows you to trade cryptocurrencies that comply with Sharia principles, that is, they have collateral and “have clear advantages”.
MUI is not part of the government of the country, so the decree of Asian religious leaders is not legally binding, but it can affect the investment decisions of many Muslims. The Council is the highest religious body and is responsible for the observance of Sharia law in Indonesia, home to the largest Muslim community in the world.
The Indonesian government, in turn, supports cryptoassets, allowing them to be traded on a par with commodity futures, as well as to invest in them … By the end of the year, the country even plans to create a separate exchange focused on cryptocurrency. However, the rupee is the only legal tender in the country and the use of digital money as currency is not permitted.
The position of religious leaders in Indonesia differs from that of the clergy in other Muslim-majority countries. The United Arab Emirates allowed cryptocurrency trading in the Dubai Free Zone, and Bahrain has supported cryptoassets since 2019.
In early November, the cryptocurrency market capitalization broke a record and exceeded three trillion dollars for the first time. The total value of all digital assets peaked after the Bitcoin price increase. On November 8, the most popular cryptocurrency reached a value of 67 thousand dollars, and on November 10, it rose to a record 69 thousand dollars.