The Indonesian Ulema Council Declares Cryptocurrency Trading Forbidden in Indonesia Under Islamic Law

According to Indonesia's top religious body, the Indonesian Ulema Council (MUI), Bitcoin and other cryptocurrencies (cryptos) are prohibited under Islamic law and should not be exchanged in the country. In Indonesia, fatwas have no legal standing; yet the proclamation may persuade many Muslims to shun cryptocurrency.

Why it Matters?

The MUI has likened cryptos to gambling, which is Haram or forbidden under Islamic law. Digital currencies are not tangible assets, and their value is subject to high volatility, so they breach Islamic law, said Asrorun Niam Sholeh, the MUI’s Head of Religious Decrees. Sholeh also stated that cryptos have elements of uncertainty, wagering and harm.

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