Monday, November 15, 2021
Indonesian Islamic body forbids crypto as currency
The Indonesian Ulema Council (MUI) "has ruled that using cryptocurrencies as a means of payment is unlawful in Islam, but trading of digital assets could be allowed. . ."
Although Indonesia, the world's biggest Muslim majority country, has banned the use of crypto as currency, crypto can still be invested in and traded in the commodities and futures market.
According to the trade ministry, the total value of cryptocurrency in the trading commodity bourse has reached 370 trillion rupiah ($25.96 billion) this year to May. At the end of 2020, the total trading was valued at 65 trillion rupiah. Further, the number of traders rose from 4 million to 6.5 million.
The MUI will continue to allow trading of cryptocurrencies that (1) meet Islamic rules, (2) have an underlying asset, and (3) carry clear benefits.
Although the MUI's decree is mot legally binding, since it is not part of the government, the ruling may affect investment decisions made by some Muslims.
See Indonesian Islamic body forbids crypto as currency, CNN Business, November 11, 2021.