Indonesia’s booming cryptocurrency and digital asset markets have been strongly opposed by local religious authorities, who believe that they are “forbidden areas” or prohibited under Islamic law, which has caused a sudden blow to the digital economy of the East Java branch of Indonesia. After extensive discussions with representatives of the Islamic community and Islamic boarding schools, the head of the Islamic organization Nahdlatul Ulama discovered that cryptocurrencies are a “forbidden zone” due to the possibility of fraud and the high market volatility that cryptocurrencies usually face. Therefore, several Islamic missionaries believe that investing in cryptocurrency is a kind of “gambling”, which…
Indonesia’s booming cryptocurrency and digital asset markets have been strongly opposed by the local religious authorities, who consider them to be “forbidden areas” or banned under Islamic law, which has caused a sudden blow to the country’s digital economy.
After extensive discussions with representatives of the Islamic community and Islamic boarding schools, the East Java branch of the Indonesian Islamic organization Nahdlatul Ulama found that cryptocurrencies are a “forbidden zone” due to the possibility of fraud and the high market volatility that cryptocurrencies usually face.
Therefore, several Islamic missionaries regard cryptocurrency investment as a kind of “gambling”, which is a “holy place” for those who believe in Islam.
Crypto assets are despised because of their “gambling” nature
Kiai Azizi Chasbullah, chairman of the Nahdlatul Ulama branch of East Java, quoted the following in a statement on his website:
“(We)… believe that although the government recognizes that cryptocurrency is a commodity, it cannot be legalized under Sharia law.”
Religious positioning is in stark contrast to Indonesia’s official policy of promoting the crypto market, which has made this Southeast Asian country a crypto hotspot, with a recent surge in interest in cryptocurrencies.
The government’s stance on cryptocurrencies remains relaxed
The country has the largest Muslim population in the world and currently has an estimated 7.3 million cryptocurrency owners, indicating that there is more room for growth.
In September, Indonesian Minister of Trade Mohamed Lutfi told local media that his government does not intend to follow China’s example by imposing a ban on cryptocurrency trading, mining, or trading. position. Digital assets.
