The Islamic group, Nahdatul Ulama of Indonesia, has deemed cryptocurrency-related activities to be unlawful. A spirited discussion over digital currencies preceded the decision.
The debate over whether or not cryptocurrency should be regarded as unlawful for Muslims is not new. Remarkably, a huge institution like Nahdlatul Ulama hasn’t taken an official position on cryptocurrencies sooner.
For a long time, Muslim scholars have debated whether cryptocurrency results from “honest work” They linked it to gambling and other prohibited behaviors under Islamic religious law.
On the other hand, some Islamic attorneys reject the concept of a prohibition, thinking that cryptocurrency should be considered permissible.
The aforementioned Islamic group identified digital currency as a medium linked to a variety of illicit activities. The East Java Nahdatul Ulama website has a public notification that says:
Since the government sees cryptocurrency as a commodity, they can’t be authorised under Islamic Sharia.
Indonesia is home to the world’s biggest Muslim population. They’ve gotten interested in cryptocurrencies, particularly after the advent of the epidemic.
Politicians in Temtejs also disputed the question of digital assets. In September, new legislation is being developed to guarantee that virtual currencies are not used for illicit reasons, Indonesia’s business minister stated BeritaSaru.com.
The Jakarta Post reported on the explosive growth of the Indonesian cryptocurrency market in August of last year. Investments in cryptocurrencies have surged to “over RP 370 trillion ($25.8 billion)” in five months, according to the Commerce Ministry at the time. In Indonesia, there were more than 6.5 million bitcoin investors as of May.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.