Indonesian Minister Says Islamic Ruling Barring Crypto Could Change
The Indonesian government said its Islamic-law determination that virtual assets, or cryptocurrencies, are prohibited could change in the future.Local media reported on October 17 that Religious Affairs Minister Nasaruddin Umar, speaking at a recent seminar in Jakarta, said an asset banned today could be allowed tomorrow if the issues surrounding it are resolved. Conversely, an asset currently deemed permissible could later be banned if new risks are found.Indonesia currently follows a 2021 ruling by the Indonesian Ulema Council, or MUI, the country’s highest Islamic clerical body. The MUI barred the use of virtual assets as currency at the time, while permitting commodity trading in digital assets that meet certain requirements.Umar said judgments on whether virtual assets are permissible should be based on objective factors, including uncertainty and the potential for harm.Separately, the National Sharia Council of the MUI, known as DSN-MUI, is targeting November to issue a new religious ruling on Bitcoin.