Indonesian Islamic body bans crypto as currency

Indonesia, the largest Muslim-majority country in the world, bans the use of crypto as currency, but investing and trading digital tokens is allowed in the commodities and futures market.
The total value of cryptocurrency trading on the commodity exchange reached 370 trillion rupees ($25.96 billion) this year through May, according to the Ministry of Commerce.

Total trade at the end of 2020 was valued at Rs 65 trillion. The number of traders reached 6.5 million against 4 million.

As a means of payment, cryptocurrencies are banned under Sharia because they have elements of uncertainty and harm, and violate state laws, Asrorun Niam Sholeh, head of religious edicts of the state, told Reuters. MUI.

Trading cryptocurrencies as a commodity is also illegal, with the MUI likening it to gambling, as it does not follow Islamic rules, such as commodities having a physical form, a clear value, and a known exact amount. , among other reasons. , he said.

However, the MUI allows the trading of cryptocurrencies that follow Islamic rules, have an underlying asset and have clear advantages, Asrorun said.

The commodity exchange allows the trading of hundreds of cryptocurrencies that meet the security and good governance requirements of the blockchain system.

The MUI decree is not legally binding because it is not part of the government, but its decision may affect the investment decisions of some Muslims.

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