The Indonesian National Islamic Council allegedly claims Bitcoin
The National Ulema Council (MUI), Indonesia’s leading Islamic research institute, has reported that cryptocurrencies like Bitcoin (BTC) are either chaotic or banned according to the teachings of Islam.
Asrorun Niam Sholeh, chairman of the MUI’s fatwa committee, confirmed the rejection of cryptocurrencies by the religious body based on alleged factors of “uncertainty, gambling and harm”.
In order for the MIU to be able to validate crypto transactions, cryptocurrencies such as Bitcoin as a commodity or digital asset must comply with the Sharia principles and have a “clear interest,” Sholeh later said at a hearing with MIU experts.
MIU discussed Bitcoin as part of the Ulama Fatwa Commission, which aims to address some of Indonesia’s biggest social, political, economic and legal issues through the lens of Islamic law.
MIU East Java branch has already been released Fatwa – an “official judgment or interpretation on a point of Islamic law by a qualified legal scholar” – announced the use of the Haram cryptocurrency at the end of October.
Although the MIU is a government-funded organization, the council’s latest decision is not intended to be legally binding. Though MUI admits that fatwa is not a law in Indonesia, some sources suggest that it can still be used as a source of “legislative inspiration”.
According to Bloomberg, MUI’s recent decision does not mean that all crypto trading in Indonesia will cease. However, the council could discourage Muslims from investing in crypto and get local institutions to reconsider issuing crypto assets.
Related: Indonesia leads growing global interest in cryptocurrencies
The news comes shortly after Bitcoin briefly crossed the $ 69,000 mark on November 10 for the first time in history.
The Indonesian government has taken a mixed stance on crypto regulation. Despite the total ban on crypto payments in 2017, local authorities have made it a priority to keep crypto trading legal. In August, local crypto exchange Pintu raised $ 35 million from some of the largest investors in the crypto and blockchain industries.