Indonesia’s Religious Leaders Declare Crypto Illegal for Muslims: Report

Muslims are forbidden from using crypto, Indonesia’s council of religious leaders has declared, Bloomberg reported on Thursday.

  • Crypto is forbidden due to the elements of uncertainty and wagering, Indonesia’s authority on Shariah compliance, the National Ulema Council (MUI), announced following a hearing.
  • Asrorun Niam Soleh, head of religious decrees, added that a crypto could be traded as a commodity if it abides by Shariah law and demonstrates a clear benefit.
  • Indonesia has one of the world’s largest Muslim populations with around 237 million, roughly 12.7% of the world’s total.
  • It was reported earlier this year that Indonesia was planning to tax profits on crypto trading to bolster revenue amid the COVID-19 pandemic.
  • While the country’s central bank declared crypto “not a legitimate instrument of payment” in January 2021, trading has been permitted.
  • According to Indonesia’s commodity futures trading regulator Bappebti, there were around 4.45 million crypto investors in the country as of May.

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