Muslims are forbidden from using crypto, Indonesia’s council of religious leaders has declared, Bloomberg reported on Thursday.
Crypto is forbidden due to the elements of uncertainty and wagering, Indonesia’s authority on Shariah compliance, the National Ulema Council (MUI), announced following a hearing.
Asrorun Niam Soleh, head of religious decrees, added that a crypto could be traded as a commodity if it abides by Shariah law and demonstrates a clear benefit.
Indonesia has one of the world’s largest Muslim populations with around 237 million, roughly 12.7% of the world’s total.
It was reported earlier this year that Indonesia was planning to tax profits on crypto trading to bolster revenue amid the COVID-19 pandemic.
Although the country’s central bank declared crypto “not a legitimate instrument of payment” in January 2018, trading has been permitted.
According to Indonesia’s commodity futures trading regulator Bappebti, there were about 4.5 million crypto investors in the country as of May.