Is Crypto Halal?

Seasoned investors are familiar with the concept of Islamic accounts, those that are considered Halal. While most investors do not use these accounts, Muslims who are true to their faith must register for such accounts if they wish to invest in anything. The advent of cryptocurrency as a major player on the financial scene has raised questions about the status of crypto. Is it halal, or is it haram? The National Ulema Council (MUI) of Indonesia has ruled that cryptocurrency is banned, or haram. The head of religious decrees, however, said on Thursday that cryptocurrency could be traded if it is proven that it shows a clear benefit and can abide by Shariah tenets. While the council cannot stop crypto trading in Indonesia, it may cause Muslims to shy away from digital assets. The Indonesian government has been supportive of crypto in the past, allowing trading alongside commodity futures and pushing to open a crypto-focused exchange by the end of the year. The nation’s finance ministry has even studied the issuing of a national digital currency. Indonesia, however, doesn’t allow crypto to be used as currency. Meanwhile, the Indonesian central bank and finance ministry are still working with the council to help bring digital assets into the fold.