RIYADH: Using crypto assets as currency is prohibited for Muslims, according to Indonesia’s council of religious leaders.
The National Ulema Council, (MUI) has deemed cryptocurrency as forbidden as it has elements of uncertainty, wagering and harm, Asrorun Niam Sholeh, head of religious decrees, said on Thursday after the council held an expert hearing, Bloomberg reported.
If cryptocurrency as a commodity or digital asset can abide by Shariah's tenets and can show a clear benefit, then it can be traded, he added.
While the decision does not mean that all cryptocurrency trading in Indonesia will be halted, the decree may deter Muslims from investing in the assets and make local institutions reconsider issuing crypto assets.
The Bank of Indonesia has also been considering issuing a central bank digital currency, and no decision has been announced yet.
