Why Crypto Fans Shouldn't Fret About This Fatwa
When the largest Islamic organization in Indonesia, the largest Islamic country, makes a ruling, it tends to make headlines. Following a "bahtsul masail," or non-binding legal discussion, the East Java branch of the Nahdlatul Ulama determined on Oct. 24, that cryptocurrency is haram, or forbidden, for members of the faith. Investors unfamiliar with these types of discussions and rulings may find themselves wondering, or even a bit skittish about, how such a ruling could impact crypto futures.
According to the NU branch's chairman: "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." The argument favored by the lead clerics of the branch is that cryptocurrency does not offer anything that fiat currency does not currently provide, and it introduces a host of concerns regarding legality with the potential to undermine local government currency.
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