Muslims are not allowed to buy bitcoins in Indonesia
Muslims are not allowed to buy bitcoins in Indonesia

Religious leaders in Indonesia ban Muslims from using Bitcoin and other cryptocurrencies. The Indonesian Committee of Scholars has announced a ban on the use of cryptocurrencies because they contain factors of uncertainty, risk and harm.

The decision is not considered an official decree. The legislature has not issued a trade embargo. But it can have a huge impact on the comfort of people when they use crypto assets in the largest Muslim country in the world.

Indonesia has a population of 237 million Muslims, which is approximately 13% of the total Muslim population in the world.

In 2018, the Central Bank of Indonesia announced that the cryptocurrency is not legal tender. However, bitcoin and cryptocurrency were traded as commodities in February 2019.

The Indonesian regulator of commodity futures announced in May that about 4.45 million crypto investors in the country are legally trading 229 different cryptocurrencies on 13 licensed platforms.

This far exceeds the number of equity investors, which is estimated at 2 million. “The massive interest in cryptocurrencies is driven by several factors, such as the convenience of the know-your-customer process and the speed with which deposit and withdrawal transactions are processed,” Awam Danjiu, head of the Indonesian Blockchain Association, said in May.

In addition, the cryptocurrency market operates 24 hours a day, which is why many young investors prefer cryptocurrencies over other forms of investment.

Bitcoin transactions are still legal in the country

Bitcoin has faced various regulatory challenges throughout its history. However, due to its decentralized nature, it is relatively unaffected by bans.

While some countries have taken a tough stance on cryptocurrencies out of fear of fraud and threats to traditional financial institutions, other countries have accepted cryptocurrencies as a currency capable of hedge against inflation, changing markets, remitting money transfer services, and relying on the US dollar. as a reserve.

Earlier this year, El Salvador became the first country in the world to introduce Bitcoin as legal tender. This Central American country has also invested in cryptocurrencies. It recently announced that it will use the profits from recent price increases to build 20 new schools.

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