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- Indonesia’s online engagement in regard to cryptocurrencies grew by at least 1772% this year alone.
- MUI head Asrorun Niam Sholeh forbids the use of cryptocurrency considers it as “gambling”
- About $25 billion worth of transactions has taken place in the first 5 months of 2021.
The world of cryptocurrencies has been perceived differently by various people, communities & groups. While some consider them as the future of finance and exchange, others call it a bubble or a Ponzi scheme of a new kind, certain religious groups also believe that the concept of cryptocurrencies also goes against the religious texts of their faith.
In a similar incident, Indonesia’s national religious council has made cryptocurrencies as something to forbid and stated that it should not be practiced in the world’s biggest Muslim majority nations.
The Indonesian Ulema Council (MUI) issued an edict also known as Fatwa locally, against cryptocurrencies as the region was beginning to witness widespread trading of the tokens. According to the trade minister of Indonesia, Muhammad Lufti stated that about $25 billion, 370 trillion Rupiah worth of transactions took place in context to cryptocurrencies in the first half of the year.
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The head of MUI, Asrorun Niam Sholeh, believed that cryptocurrencies had elements of uncertainty, wagering & harm which consequently goes against Sharia law. He was also found stating the trading in cryptocurrencies was like a gambling bet. However, this doesn’t mean that the trading of cryptocurrencies is banned in the country but the influence of a religious institution & its head cannot be understated. It is also worth noting that the financial ministry consults the MUI frequently.
According to research by conformant, Indonesia’s online engagement in regards to cryptocurrencies and other digital tokens grew by at least 1772% in the year of 2021. The increase in numbers resulted in considering the region as a new market hotspot for cryptocurrencies. The company also pointed out that the interest in cryptos among people grew faster than others on the board.
The Edictiaments also came across when the Indonesian central bank was planning to launch their own CBDC, as there wasn’t any public information, Bank Indonesia could find itself in a lurch regarding the decision.
The MUI in the United Arab Emirates (UAE) had also taken a negative stance regarding cryptocurrencies are other digital assets; however, Dubai seems in no mood to ban crypto trading, on the contrary, trading of cryptocurrencies are absolutely legal & is permitted under the Dubai’s free zone. If anything, the Financial Services Regulatory Authority FSRA is keen on issuing more licenses to crypto-centric businesses to operate in Dubai.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
