Indonesian Muslim clerics classify cryptocurrencies as ‘un-Islamic’
The booming market for cryptocurrencies and digital assets in Indonesia was met with a backlash from local religious authorities who are deeming them “haram,” or forbidden, under Islamic law, in a sudden blow to the digital economy in the country,
The East Java branch of the Indonesian Islamic organisation Nahdlatul Ulama, after extensive discussions with representatives of the Islamic community and Islamic boarding schools, found that crypto was “haram” because of the probability of fraud and the high market volatility that cryptocurrencies are usually faced with.
Several Islamic preachers therefore considered investment in crypto as an “act of gambling,” which makes it “haram” for those who practise the Islamic faith.
Crypto assets despised because of their “gambling” nature
Kiai Azizi Chasbullah, chairman of the East Java Nahdlatul Ulama branch, was quoted as follows in a statement published on their website:
“(We)… have the view that although the government recognises cryptocurrency as a commodity, it cannot be legalised under Shariah law.”
The religious positioning stands in stark contrast to Indonesia’s official policy to foster the crypto market, which has made the Southeast Asian nation a crypto hotspot with a spike in interest in cryptocurrencies in the recent past.
The government’s position remains relaxed towards crypto
The country, which has the world’s largest Muslim population, currently counts an estimated 7.3 million crypto owners, indicating that there is plenty more scope for growth.
In September, Indonesia’s minister of trade Muhammad Lutfi told local media that his government would not plan to follow China and impose a ban on cryptocurrency transactions, mining or trading, which shows a clear positioning towards the Islamic scholars who are uncomfortable with the innovative development of digital assets.
The booming market for cryptocurrencies and digital assets in Indonesia was met with a backlash from local religious authorities who are deeming them “haram,” or forbidden, under Islamic law, in a sudden blow to the digital economy in the country, The East Java branch of the Indonesian Islamic organisation Nahdlatul Ulama, after extensive discussions with representatives of the Islamic community and Islamic boarding schools, found that crypto was “haram” because of the probability of fraud and the high market volatility that cryptocurrencies are usually faced with. Several Islamic preachers therefore considered investment in crypto as an “act of gambling,” which...
The booming market for cryptocurrencies and digital assets in Indonesia was met with a backlash from local religious authorities who are deeming them “haram,” or forbidden, under Islamic law, in a sudden blow to the digital economy in the country,
The East Java branch of the Indonesian Islamic organisation Nahdlatul Ulama, after extensive discussions with representatives of the Islamic community and Islamic boarding schools, found that crypto was “haram” because of the probability of fraud and the high market volatility that cryptocurrencies are usually faced with.
Several Islamic preachers therefore considered investment in crypto as an “act of gambling,” which makes it “haram” for those who practise the Islamic faith.
Crypto assets despised because of their “gambling” nature
Kiai Azizi Chasbullah, chairman of the East Java Nahdlatul Ulama branch, was quoted as follows in a statement published on their website:
“(We)… have the view that although the government recognises cryptocurrency as a commodity, it cannot be legalised under Shariah law.”
The religious positioning stands in stark contrast to Indonesia’s official policy to foster the crypto market, which has made the Southeast Asian nation a crypto hotspot with a spike in interest in cryptocurrencies in the recent past.
The government’s position remains relaxed towards crypto
The country, which has the world’s largest Muslim population, currently counts an estimated 7.3 million crypto owners, indicating that there is plenty more scope for growth.
In September, Indonesia’s minister of trade Muhammad Lutfi told local media that his government would not plan to follow China and impose a ban on cryptocurrency transactions, mining or trading, which shows a clear positioning towards the Islamic scholars who are uncomfortable with the innovative development of digital assets.
