Indonesia bans crypto for muslims

According to Indonesia’s council of religious leaders, the use of crypto assets as currency is prohibited for Muslims.

The National Ulema Council, or MUI, has said that all cryptocurrency transactions are now considered haraam or banned, as they contain elements of uncertainty, wagering and harm. This was stated by head of religious decrees Asrorun Niam Sholeh after the expert hearings, which took place on Thursday.

However, the head of religious decrees allowed cryptocurrency trading if it can obey Sharia tenets and can show clear benefits as a commodity or digital asset.

MUI is responsible for enforcing Sharia law in Indonesia – the country with the largest Muslim population. MUI also often collaborates with the country's regulators, such as the ministry of finance and the central bank on Islamic finance issues.

While the MUI's decision does not mean that all cryptocurrency trading will be halted in Indonesia, the decree could deter Muslims from investing in assets and calls into question the release of the central bank's digital currency (CBDC) by the Bank of Indonesia.

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