Indonesian Church Bans Muslims From Using Cryptocurrencies

Indonesian Tarjih and Muhammadiyah churches have declared a law prohibiting Muslims in Indonesia from using or investing in cryptocurrencies. They say weakness and lack of state support is why Muslims are banned from using or investing in cryptocurrencies.

Cryptocurrency is not stable

Tajdid, the leader of the Indonesian Islamic group Tarjih and Muhammadiyah, has announced a nationwide ban on cryptocurrency. The law comes months after other Islamic groups banned the use of cryptocurrencies. This policy points out the illegality and harassment of Muslims using cryptocurrencies.

The official website of the Islamic group said in a statement that Tarjih had illegally manufactured cryptocurrencies based on investments and exchanges.

Indonesian media reported that one of the reasons why Islamic groups banned cryptocurrencies if they do not trade. The group argued that Indonesian Muslims might illegally interpret the use of bitcoin because ideas like bitcoin that are not backed by assets are seen as ambiguous.

consumer protection issues

Along with the uncertainty of cryptocurrencies, Tarjih explains other reasons why cryptocurrencies like Bitcoin cannot be used as a medium of exchange. The organization's policy states:

Using bitcoin as an exchange is illegal in our country and not responsible for it. Don't talk about protecting consumers when using bitcoin.

The Tarjih Parliamentary Act is the latest move by the Indonesian Islamic group to oppose cryptocurrencies, and the State Ulema Council (MUI) will also ban cryptocurrencies by November 2021. Restrictions, MUI said that the main damage to cryptocurrencies is uncertain.

Although the Islamic Association Law is illegal, it still prohibits Muslims in Indonesia from investing in or using digital devices.