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- Bitcoin has been declared haram by the National Ulema Council of Indonesia
- The council believed that such crypto assets are an element of uncertainty, wagering, and harm
- Although the MUI is a government-funded organization, it’s latest decision is not legally binding
Bitcoin has recently gained back its momentum after several turbulent months. This week itself the flagship crypto asset achieved a new all time high above the price level of $69k. However, after the new high record, on Thursday, the National Ulema Council (MUI), Indonesia’s top Islamic scholarly body declared that such assets similar to BTC are haram, or forbidden. Notably, the MIU is a government funded organization in the nation. However, MUI’s latest decision considers crypto as an element of uncertainty, wagering, and harm by the tenets of Islam.
Indonesian MUI rejects cryptocurrencies
According to Asrorun Niam Sholeh, the chairman of MUI’s Fatwa Commission, digital assets like Bitcoin are elements of uncertainty, wagering and harm. Following the factors, the organization confirmed the religious authority’s rejection of crypto. According to Sholeh, in order for the organization to endorse digital currency trading, crypto needs to abide by the Islamic law, Shariah. In contrast, the guidelines should consider such assets as commodities or a digital asset and show a clear benefit.
MUI’s latest decision on Bitcoin does not legally binding
Following an expert MUI hearing, the organization discussed Bitcoin as a part of the Ulama Fatwa Commission. The commission is designed to address some of the nation’s biggest social, political, economic, and legal issues via the lens of Islamic law.
Notably, the East Java branch of the organization had previously issued such a fatwa, that declared the use of digital currency haram in late October. Indeed, a fatwa is a formal interpretation on a point of the Islamic law that is given by a qualified legal scholar.
However, although the MUI is a government-funded organization, it’s latest decision is not legally binding. Although the council admitted that the fatwa is not a law in the nation, it still can be used as a source of legislative inspiration.
MUI’s decision won’t stop crypt trading
One of the leading, crypto news media outlets, Bloomberg has recently cited that the latest decision by MUI will not halt all crypto trading activities in Indonesia. Still, the Ulama council can deter Muslims from investing in digital currency and make local firms reconsider issuing such assets.
Notably, the decision by the council came when the price of Bitcoin surpassed the benchmark level of $69k for the first time. However, when it comes to crypto, the Indonesian government has taken a mixed stance regarding regulation. Unlike other nations, the government preferred to keep crypto trading legal, despite prohibitions.
