The crypto market is thriving and booming in Indonesia but despite that, the East Java branch of the Indonesian Islamic organisation Nahdlatul Ulama (NU) has deemed cryptocurrency Haraam or “forbidden” under Islamic law (Sharia law)
The decision of the Islamic organisation comes after a discussion by the East Java brach of Indonesian Islamic Organisation Nahdlatul Ulama, representatives of the Islamic community and also, representatives of the Islamic boarding schools.
Reportedly, the Islamic organisation has deemed crypto as ‘haraam’ because of the chances of fraud and the volatility of the market. Essentially, due to the volatility of the market, several Islamic preachers consider investment in crypto as an act of gambling and therefore, consider it Haraam for those who practise Islam.
Kiai Azizi Chasbullah, chairman of the East Java Nahdlatul Ulama branch, was quoted in a statement published on their website.
“The participants of the bahtsul masail have the view that although the government recognises cryptocurrency as a commodity, it cannot be legalised under Islamic sharia law,” he said.
Interestingly, while the Islamic organisation has deemed crypto haraam, Indonesia, with one of the largest Muslim populations, is one of the fastest growing markets for crypto. According to reports, Indonesia is the ‘crypto hotspot’ of 2021 and saw the second largest spike in terms of interest in crypto.
It had an estimated 7.3m crypto owners and falls in the middle of countries analysed concerning the percentage of the population owning crypto, showing there’s plenty more scope for growth.
In September, the Minister of Trade of Indonesia, Muhammad Lutfi, told local media that Indonesia didn’t plan to follow China and impose a ban on cryptocurrency transactions, mining or trading.
