The country’s top fatwa institution in the Sharia-ruled country has declared crypto currency trading haram.
Cryptocurrency trading has been deemed ‘haram’ or banned by one of Indonesia’s top religious authorities.
The Indonesian Ulema Council has declared crypto currencies contrary to Sharia in the world’s largest Islamic country.
Asrorun Niam Sholeh, the head of religious decrees of the Ulama Council, on Thursday issued an anti-crypto fatwa. According to Reuters, crypto currency trading, which they said exhibited “elements of uncertainty, betting and loss” in the fatwa, was combined with gambling.
Although the fatwas of the Ulema Council are not legally binding, its latest decision could have an impact in Indonesia, where crypto trading has skyrocketed over the past year. Dec May 2020 and 2021 alone, the number of Indonesians involved in the cryptocurrency market in the Sharia-ruled country reportedly increased from four million to 6.5 million, while the Ministry of Commerce said the value of the cryptocurrency exchange had reached a total of 370 trillion rupees (257.5 billion pounds) as of May.
The decision of the Ulema Council also declared commodity trading for electronic assets haram. However, the institution allowed certain cryptos to comply with Islamic law, or Sharia, which requires goods and financial instruments to have a “physical form, a net worth”.
The head of the religious decrees of the Ulama Council added that crypto-currencies can be allowed if they “can meet Islamic rules, have a basic asset and provide clear benefits”.
The Ministry of Religious Affairs also said that virtual currencies are ‘not permissible’ and that it is ‘not religiously appropriate at this stage’ to trade.