# Indonesia Signals Islamic Ruling Barring Crypto Could Change

- URL: https://stocks.freetheai.org/news/indonesia-signals-islamic-ruling-barring-crypto-could-change-70ff9f
- Published: 2026-10-17T07:10:09Z
- Category: crypto; sentiment: neutral; impact: medium
- Symbols: [BITSTAMP:BTCUSD](https://stocks.freetheai.org/symbols/BITSTAMP-BTCUSD)
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Indonesia may revise its Islamic legal stance on virtual assets following remarks by Religious Affairs Minister Nasaruddin Umar. Speaking at a seminar in Jakarta, Umar explained that assets currently prohibited under Islamic law could become permissible if underlying issues are resolved, while previously allowed assets could face bans if new risks emerge. Judgments on permissibility will depend on objective factors, including financial uncertainty and potential harm.

The position represents a potential shift from a 2021 ruling issued by the Indonesian Ulema Council, or MUI, the nation's primary Islamic clerical body. That decision prohibited digital assets from being used as currency while allowing commodity trading in compliant virtual assets. Re-evaluating these religious determinations is significant for crypto adoption in Indonesia, where Islamic law influences financial practices for a large portion of the population. Following the news, Bitcoin (BITSTAMP:BTCUSD) traded virtually flat at $81,480, down 0.02% on the day.

Market participants are now turning their attention to upcoming regulatory developments. The National Sharia Council of the MUI, known as DSN-MUI, plans to issue a fresh religious ruling specifically focused on Bitcoin in November. Investors will monitor whether this decision relaxes existing restrictions on digital currency usage or establishes new standards for compliant trading.

## Key points

- Indonesian Religious Affairs Minister Nasaruddin Umar stated Islamic rulings prohibiting cryptocurrencies could change if risks and uncertainties are resolved.
- Indonesia currently follows a 2021 decision by the Indonesian Ulema Council that banned crypto as currency but allowed certain commodity trading.
- The National Sharia Council of the MUI plans to release a new religious ruling on Bitcoin in November.
- Bitcoin (BITSTAMP:BTCUSD) was trading down 0.02% at $81,480 following the announcement.

## Questions and answers

### Is cryptocurrency banned under Islamic law in Indonesia?

Indonesia follows a 2021 ruling by the Indonesian Ulema Council that bars cryptocurrencies from being used as currency, though commodity trading in compliant digital assets is permitted under specific conditions.

### Will Indonesia change its religious ruling on Bitcoin?

Religious Affairs Minister Nasaruddin Umar stated that Islamic rulings prohibiting virtual assets could change if underlying issues are resolved. The National Sharia Council plans to issue a new ruling on Bitcoin in November.

### How are Islamic rulings on crypto decided in Indonesia?

Judgments are based on objective factors, such as financial uncertainty and potential harm. Rulings can change if surrounding risks are resolved or if new risks are discovered.