A council of Islamic religious leaders in Indonesia has banned Muslims in the country from engaging in crypto-centric activities – branding it “haram.”
According to Bloomberg, Asronun Niam Sholeh, chair of religious decrees at the National Ulema Council, condemned crypto. Sholeh branded digital currencies as “uncertain, wagering and harmful.” In addition, the Muslim cleric suggested that the essence of digital currencies was contrary to Sharia law.
The country of Indonesia has a very prominent Muslim presence, and the National Ulema Council (MUI) is one of the most influential religious and political bodies there. The Council, which functions as a quasi-official body for Islamic affairs in Indonesia, has members in key areas of government.
This declaration from the MUI is expected to create a ripple effect across Muslim faithfuls in Indonesia, given how closely-knit they are. Furthermore, it will also impact how the local Muslims digital currencies. As it stands, the principles that govern Muslim finance frown upon assets that generate interest (riba). In addition, it also shuns speculative assets (maysir), assets devoid of profit-sharing, and assets characterized by excessive risk (gharar).
It remains to be seen how crypto would fare in Indonesia in light of the MUI’s declaration. As it stands, the digital currency space is on a rally and a growing number of Indonesians seem attuned to it. Indonesian Muslims comprise about 87% of the country’s 203 million total population.
Image Credits: Pixabay
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