The non-binding ruling by the Indonesian Ulema Council will deter a lot of Muslims from investing in crypto assets.
Indonesia’s religious council has reportedly issued a non-binding ruling, advising Muslims against using crypto as currencies.
The Indonesian Ulema Council (MUI) made the announcement on Thursday, deeming crypto currencies as “haram” for carrying elements of uncertainty, wagering, and harm.
Asrorun Niam Sholeh, head of fatwa, or religious decrees, however, opened the door to future trading, if cryptocurrency can abide with Shariah law and prove beneficial to citizens, according to Bloomberg.
The decision is not legally binding and does not officially ban cryptocurrency trading in Indonesia, but will discourage a lot of Muslims from investing in crypto assets.
There is no consensus among Islamic countries on considering crypto currencies as "halal" or "haram" with countries like the United Arab Emirates and Bahrain allowing residents to use forms of cryptocurrency assets.
It is also unknown how such a ruling could impact crypto future.
Bank Indonesia has already mulled the idea of creating a central bank digital currency, Bloomberg reported.
And Indonesia’s government has been supportive of cryptocurrency, with plans to create a crypto-focused exchange by the end of 2021.