Indonesian Religious Authority Forbids Crypto For Muslims: Bitcoin Features Uncertainty, Wagering And Harm

Indonesia's religious leaders have deemed cryptocurrencies such as Bitcoin BTC/USD forbidden for Muslims.

What Happened: Indonesia's National Religious Council ruled Bitcoin and other cryptocurrencies are haram, meaning that they are banned for Muslims, according to a Thursday Bloomberg report. After an expert hearing on Thursday, Asrorun Niam Sholeh, head of religious decrees, said the council banned cryptocurrency because it features uncertainty, wagering and harm.

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The ban is not as clear-cut as it may at first appear. Sholeh also said that if a cryptocurrency abides by Shariah's tenets and has a clear benefit, then its trading is allowed. Bloomberg noted the council is the authority on Shariah compliance in the country with the world's largest Muslim population and the local finance ministry and central bank consult them on financial issues.

While the decision does not mean that all cryptocurrency trading will stop in Indonesia, the decree could drive local Muslims to avoid investing in crypto and deter local institutions from issuing their own tokens. 

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