One of the notable Islamic organizations in Indonesia, the National Council of Ulemas (MUI), has stated that cryptocurrencies of every type are against the Islamic preachings, hence it was seen as haram.
The chairman of the MUI Fatwa Commission, Asrorun Niam Sholeh, added that a major reason that cryptocurrency was viewed as against the Islamic principles was that it contained aspects that were linked to “uncertainty, betting, and prejudice.”
Before the MUI can ever view cryptocurrencies as not items that contravene the Islamic principles, it should follow the Sharia guidelines that outline what a commodity should possess.
An Ulama Fatwa Commission was held, and one of the topics that were debated was cryptocurrency. The aim of the Commission is to analyze the different subjects that Indonesian Islamic faithfuls have to face and to see if they are in line with Islamic law. A few weeks ago, the East Java branch of MIU had issued a fatwa, which stated that crypto trading was an activity that contravened the Islamic teachings.
It is important to note that the decision by MUI is not legally binding on Indonesian residents, but it is to act as a guideline for Muslims. Based on the article by Bloomberg, this decision by MUI will not in any way affect crypto trading or exchanges in the country.
The conclusions by MUI is expected to be followed by Muslim faithfuls, and may affect how local authorities relate to cryptocurrency.
In 2017, cryptocurrency payment was banned by the Indonesian government, but there is no ban on crypto trading.
