World's Largest Islamic Organization (NU) Validates Bitcoin as an Asset and a Transaction Tool

Bitcoin has received an important ruling from Nahdlatul Ulama (NU), one of the world’s largest Islamic organisations, following the organisation’s 35th Muktamar in Jombang, East Java. 

NU Bahtsul Masail Waqi’iyah concluded that Bitcoin can qualify as mal, or property and an asset, and can also function as tsaman, or a medium of exchange, under certain circumstances.

However, there is an important distinction. NU does not recognise Bitcoin as Indonesia’s official currency. Using Bitcoin as legal tender would conflict with Indonesian monetary law, which establishes the rupiah as the country’s lawful currency.

Key Takeaways

• NU recognises Bitcoin as a legitimate digital asset and property under Islamic jurisprudence.

• Bitcoin may be used as a transaction tool in certain private transactions, subject to applicable regulations.

• Bitcoin cannot replace the rupiah as Indonesia’s official currency.

What Did NU Decide About Bitcoin?

source by X Crypto Wave

The decision was delivered during the 35th Muktamar of Nahdlatul Ulama, held from 27 to 31 August 2026 at Pondok Pesantren Bahrul Ulum, Tambakberas, Jombang, East Java.

NU’s Commission on Contemporary Jurisprudential Issues, known as Bahtsul Masail Waqi’iyah, examined whether Bitcoin satisfies the requirements of mal and tsaman under Islamic jurisprudence.

Following extensive discussion, the commission concluded that Bitcoin fulfils the characteristics required to be considered mal. NU’s official report noted several factors, including Bitcoin’s practical benefits, its recognised value within society, its ability to be exchanged for other goods, and its transferability between owners.

This means BTC is not automatically regarded as an invalid or worthless digital object simply because it exists entirely online.

The ruling instead recognises that digital assets can have economic value when they provide legitimate benefits, can be owned and transferred, and are recognised by society.

That distinction is important because the Islamic discussion surrounding Bitcoin is not simply about whether cryptocurrency prices rise or fall.

It is also about whether Bitcoin possesses characteristics that Islamic commercial law associates with property.

Bitcoin as Mal

In Islamic jurisprudence, mal broadly refers to property or something that has recognised economic value and can be possessed or controlled.

NU’s ruling considers Bitcoin to meet those requirements. Bitcoin can be transferred between owners, exchanged for other assets and controlled through private keys.

Its market price can fluctuate considerably, but NU’s discussion also considered the fact that Bitcoin has not simply become permanently worthless as a result of its volatility.

For Muslim investors, this creates an important distinction between owning Bitcoin as an asset and treating Bitcoin as the national currency.

The first can be permissible under NU’s ruling, while the second is prohibited in the Indonesian legal context.

Read Also: How to Buy Bitcoin (BTC) Safely in 2026

Why Can Bitcoin Be Used as a Transaction Tool?

The second major element of NU’s ruling concerns Bitcoin’s potential role as tsaman, or a medium of exchange.

This does not mean NU has declared Bitcoin to be Indonesia’s official money.

Instead, the ruling acknowledges that Bitcoin can have an exchange function in certain circumstances.

The distinction is similar to separating an asset’s ability to facilitate an exchange from its status as legal tender.

Bitcoin can be transferred from one person to another and exchanged for goods, services or other assets where such transactions are legally permitted. NU therefore considers its transaction function within the framework of Islamic jurisprudence.

Gharar and Speculation Still Matter

The ruling does not mean every Bitcoin-related activity is automatically acceptable.

Islamic finance places significant importance on avoiding gharar, or excessive uncertainty, as well as transactions that involve prohibited elements.

Bitcoin’s extreme price volatility is therefore still relevant.

For example, simply buying Bitcoin with the intention of owning an asset is different from participating in highly speculative activities where the transaction structure creates excessive uncertainty or resembles gambling.

Investors should therefore look beyond the label of “Bitcoin” and examine the specific transaction, platform, contract and level of risk involved.

This is particularly relevant for leveraged trading, derivatives and unregulated peer-to-peer arrangements.

In other words, NU’s decision provides recognition of Bitcoin as an asset, but it does not remove the need for responsible financial behaviour.

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Bitcoin Is Not Indonesia’s Official Currency

Perhaps the most important part of NU’s ruling is the distinction between Bitcoin as an asset and Bitcoin as legal tender.

NU concluded that using Bitcoin as Indonesia’s official currency is not permitted because it conflicts with Law No. 7 of 2011 on Currency.

Indonesian law establishes the rupiah as the country’s currency and sets out requirements concerning its use as a means of payment.

Therefore, NU’s decision should not be interpreted as saying Indonesians can replace rupiah payments with Bitcoin whenever they wish.

Instead, the ruling provides a framework under which Bitcoin can be viewed as a digital asset that can be owned and traded while remaining subject to Indonesian law.

What Does This Mean for Indonesian Crypto Investors?

For Indonesian Muslims, the decision could provide greater clarity when considering Bitcoin ownership and trading.

The key takeaway is that owning or trading Bitcoin as a digital asset can be permissible according to NU’s ruling, provided the transaction itself complies with Islamic principles and applicable regulations.

Indonesia’s cryptocurrency market is also subject to financial regulation. Responsibility for regulating and supervising digital financial assets, including crypto assets, has moved to the Financial Services Authority (OJK). OJK’s current framework includes POJK No. 27 of 2024 and subsequent regulatory updates.

As of June 2026, OJK reported 22.69 million consumer accounts with digital financial asset traders, showing how significant the crypto market has become in Indonesia. OJK also reported two crypto exchanges and 26 licensed digital financial asset traders within the regulated ecosystem at that time.

For investors, this reinforces the importance of choosing platforms that operate within applicable regulatory requirements and understanding the rules surrounding crypto transactions.

It is also important to remember that religious permissibility does not mean financial safety or guaranteed profitability.

Bitcoin remains highly volatile. Prices can move sharply in either direction, and investors can lose money.

Therefore, anyone considering Bitcoin should assess their risk tolerance, avoid excessive leverage and understand how the chosen trading platform works.

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What the NU Ruling Could Mean for Bitcoin in Indonesia

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The decision may have broader implications for Islamic finance and cryptocurrency adoption.

Indonesia has a large Muslim population, and questions about whether digital assets are compatible with Islamic principles have been discussed for years.

By classifying Bitcoin as mal and recognising its potential tsaman function, NU has provided a more nuanced position than simply describing cryptocurrency as universally halal or haram.

That nuance could help Muslims distinguish between different crypto activities.

Buying Bitcoin as an asset, using Bitcoin in a legally permitted transaction, engaging in highly leveraged speculation and attempting to use Bitcoin as national currency are not necessarily the same activity.

Each involves different legal, financial and fiqh considerations.

The decision therefore adds another layer to Indonesia’s evolving digital finance landscape.

For investors, the practical lesson is straightforward: Bitcoin can be recognised as an asset without becoming Indonesia’s official money.

Read Also: Learn How to Earn Staking Rewards By Holding Crypto Asset

Conclusion

NU’s latest Bitcoin ruling represents an important development for Islamic finance and Indonesia’s cryptocurrency market. 

The organisation’s 35th Muktamar concluded that Bitcoin can qualify as mal, or a legitimate digital asset, and can also function as tsaman in appropriate transactions. 

However, Bitcoin cannot serve as Indonesia’s official currency because the rupiah remains the country’s legal tender.

For those interested in trading Bitcoin, choosing a reliable platform and managing risk remain essential. Bitrue provides spot trading, Bitcoin markets and security features including multi-signature cold-wallet technology.

Trade BTC on Bitrue and always consider both financial risk and applicable regulations before trading.

FAQ

Did NU declare Bitcoin halal?

NU’s 35th Muktamar concluded that Bitcoin can qualify as mal, or legitimate property and a digital asset, and can be transacted under Islamic jurisprudence. However, the permissibility depends on the nature of the transaction and compliance with relevant principles and regulations.

Can Muslims in Indonesia buy and hold Bitcoin?

Based on NU’s ruling, Bitcoin can be owned and traded as a digital asset. Investors should nevertheless ensure that their transactions comply with Islamic principles and Indonesian regulations.

Can Bitcoin be used to pay for goods in Indonesia?

Bitcoin cannot replace the rupiah as Indonesia’s official currency. NU specifically distinguished Bitcoin’s potential role as a transaction tool from its use as legal tender. Indonesian currency law establishes the rupiah as the country’s lawful currency.

Does NU’s ruling mean Bitcoin trading is risk-free?

No. The ruling concerns Bitcoin’s status under Islamic jurisprudence, not investment performance. Bitcoin remains highly volatile, and trading can result in significant losses.

Where can I trade Bitcoin?

Investors can use established crypto trading platforms such as Bitrue, which offers Bitcoin spot trading and other crypto products. Bitrue also states that it uses security measures including multi-signature cold-wallet technology.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.