The National Council of Ulema (MUI), Indonesia’s most important Islamic scientific body, has reportedly found that cryptocurrencies such as Bitcoin (BTC) are banned or banned according to Islamic teachings.

Asrorun Niam Sholeh, chair of the MUI’s fatwa committee, has confirmed the rejection of a religious reference to cryptocurrency due to the alleged elements of “uncertainty, effort and harm”.

In order for MIU to support cryptocurrency trading, cryptocurrencies such as Bitcoin must follow Islamic sharia principles as a commodity or digital asset and show “clear interest”, as stated by MIU’s expert hearing.

MIU discussed Bitcoin as part of the Fatwa Academic Committee, which aims to address some of Indonesia’s biggest social, political, economic and legal issues through the lens of Islamic law.

The MIU East Java branch issued a fatwa – “an official ruling or interpretation of a clause in Islamic law given by a qualified lawyer” – which declared the use of cryptocurrency banned in late October.

Although MIU is a state-funded organization, the council’s latest decision is not legally binding. Although the MUI admits that the fatwa is not legal in Indonesia, according to some sources, it can still be used as a “source of legislative inspiration.”

According to Bloomberg, the recent MUI decision does not mean that all cryptocurrency trading in Indonesia will be stopped. However, the councils may discourage Muslims from investing in digital currencies and force local institutions to reconsider issuing cryptocurrencies.

Related topics: Indonesia is leading the global boom in cryptocurrency

The news came shortly after Bitcoin briefly crossed the $ 69,000 price mark for the first time in history on Wednesday.

The Indonesian government has taken a controversial stance on cryptocurrency regulation. Despite a complete ban on cryptocurrency payments in 2017, local authorities have preferred that cryptocurrency trading remains legal. In August, the local crypto exchange Pintu raised $ 35 million from the largest investors in the cryptocurrency and blockchain industry.

Source: CoinTelegraph

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