Indonesian Islamic Organization Forbidden Cryptocurrency
The East Java branch of one of the largest Islamic organizations in Indonesia, Nahdlatul Ulama (NU), announced that cryptocurrencies cannot be legalized under Islamic Sharia law.
According to Cointelegraph, the organization issued a fatwa, according to which cryptocurrencies and any interaction with them are “haram”.
Haram is a sinful act that is prohibited in Islam. Something that is forbidden by the Quran.
Interest in cryptocurrency has skyrocketed in Indonesia over the past year. In 2021 alone, the number of people reading cryptography articles increased by 1,772%.
Indonesia is home to the largest Muslim population in the world and thriving crypto industry. According to Indonesia’s Ministry of Commerce, there were about 6.5 million crypto investors in the country by May of this year.
An announcement posted on the website of the Nahdlatul Ulama branch office on October 24 quotes Kiai chairman Azizi Hasbullah:
“The Bahsul Masail members believe that although the government recognizes cryptocurrency as a commodity, it cannot be legalized under Islamic Sharia law.”
The group has declared the cryptocurrency haram as there are many fraudulent activities associated with it and therefore cannot be used for legitimate investments.
Some Muslim scholars have compared cryptocurrency to gambling, which is prohibited by Islamic religious law. And other Islamic organizations around the world say that Islamic law permits the use of cryptocurrencies.
However, Commerce Minister Muhammad Lutfi told local media that Indonesia has no plans to follow in China’s footsteps and ban cryptocurrency transactions, mining or trading.