Indonesia’s national religious council, the ‘National Ulema Council of Indonesia’ (MUI), has declared cryptocurrencies forbidden due to uncertainties, bets, and harmful elements associated with them.
Asrorun Niam Sholeh, head of religious decrees, said on Thursday that if a digital asset complies with Islamic law (Shariah law) and bespoke as a clear benefit, the cryptocurrency can be traded as a commodity.
According to Indonesian government statistics, Indonesia constitutes a population of 270 million, out of which the Muslim population accounts for about 87%. Indonesia has the world’s largest Muslim population at 234 million.
MUI holds the authority to advise the Indonesian government, including the central bank and the Ministry of Finance, on compliance with Shariah law.
As of now, cryptocurrencies can be traded as commodities in Indonesia, but their use as a payment method is prohibited. It should be noted that the decisions declared by the MUI are not legally binding, however, their decisions can impact a large number of Muslims.