The Indonesian Ulema Council (MUI) forbids cryptocurrencies for two reasons. This has become news in several well-known media in foreign countries.
The chairman of the MUI Fatwa Commission explained two reasons that made crypto illegal. "First, from the syar'i element it does not meet, second from the communion side or this law there is no validity. A currency must be agreed upon by the state," said Asrorun Niam, Thursday (11/11/2021) in a telephone connection.
Asked if there is a potential for crypto to become halal again after there is a regulation from the government that makes it more legal in the eyes of the law, Asrorun said the element of gharar or the ambiguity of the value made him a bit doubtful about it.
Well-known business media Forbes lowered the title 'Cryptocurrency Is Unlawful For Muslims, Indonesia's Top Religious Council Says'. "This decision could have an impact on the financial decisions of Muslims in the country even though this institution has no legal force," Forbes said.
While the Reuters news agency wrote the title 'Indonesian Islamic body forbids crypto as currency'.
"The MUI, the top clerical body, has declared the use of cryptocurrencies as a means of payment to be unlawful in Islam, but trading in digital assets is permissible, one of its leaders said," Reuters reported.
Meanwhile, the financial media Bloomberg covered the headline 'Crypto Is Forbidden for Muslims, Indonesia's National Religious Council Rules'. "The MUI holds authority on Sharia law compliance in the country with the largest Muslim population, where the Minister of Finance and the central bank talk to them about Islamic finance issues," Bloomberg said.
Bloomberg added that the Indonesian government actually supports crypto assets, allows them to be traded as investments and will set up crypto exchanges. However, it is not allowed as a currency for payments.
"The stance of religious leaders in Indonesia may differ from that of their counterparts in other Muslim-majority countries. The United Arab Emirates has allowed cryptocurrency trading in Dubai while Bahrain has supported crypto assets since 2019," wrote Bloomberg.
