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 2018, 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.