Indonesia’s national Islamic council reportedly declares Bitcoin haram

The National Ulema Council (MUI), Indonesia’s top Islamic scholarly body, has reportedly determined cryptocurrencies like Bitcoin (BTC) to be haram, or forbidden, via the tenets of Islam.

Asrorun Niam Sholeh, chairman of MUI’s Fatwa Commission, demonstrated the non secular authority’s rejection of cryptocurrencies due to alleged elements of “uncertainty, wagering and harm.”

In order for the MIU to suggest crypto trading, cryptocurrencies like Bitcoin want to abide by Shariah suggestions as a commodity or a digital asset and exhibit a “clear benefit,” Sholeh reportedly stated following an professional MIU hearing.

The MIU discussed Bitcoin as part of the Ulama Fatwa Commission, which is designed to address some of Indonesia’s largest social, political, monetary and prison problems via the lens of Islamic law.

The MIU’s East Java department before issued a fatwa — a “formal ruling or interpretation on a point of Islamic regulation given by means of a certified legal scholar” — declaring the use of cryptocurrency haram in late October. While the MIU is a government-funded organization, the council’s modern-day selection is reportedly now not legally binding. Despite the MUI admitting that the fatwa is not law in Indonesia, it nevertheless can be used as a source of “legislative inspiration,” according to some sources.

According to Bloomberg, the latest selection from the MUI doesn’t imply that all crypto trading will be stopped in Indonesia. However, the council may want to deter Muslims from investing in crypto and make nearby establishments rethink issuing crypto assets.

The news comes rapidly after Bitcoin temporarily passed the $69,000 price mark for the first time in history on Wednesday. The Indonesian authorities have taken a blended stance on crypto regulation. Despite placing a blanket ban on cryptocurrency payments back in 2017, nearby authorities have desired to maintain crypto trading legal.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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