The Tarjih and Renewal Assembly of the Muhammadiyah Central Leadership issued a new fatwa on crypto assets in March 2026. This fatwa declares crypto as a legitimate investment instrument within the framework of Islamic economics with certain conditions. This is significant as it alters Indonesia's sharia perspective on crypto, encouraging further literacy among Muslim investors.
Sharia Consensus and Fatwa Details
According to the issued fatwa, crypto is considered to meet the criteria of fiqh mal mutaqawwam, which means it is deemed as a valuable digital asset. However, using crypto as a payment method remains invalid due to high volatility and potential transaction harms. This provides crucial guidance for Muslims seeking to invest in crypto in ways that align with sharia principles.
Indodax Vice President, Antony Kusuma, called this fatwa a pivotal moment for maturing the crypto ecosystem in Indonesia. Crypto can be utilized as a long-term investment, spot trading, and productive staking, yet market manipulation and margin trading are not permissible.
Education and Risk Management
The Muhammadiyah fatwa advocates for enhancing crypto literacy, especially in risk management for investors. Digital assets still possess high volatility risks that must be well understood. As the country with the largest Muslim population globally, this perspective becomes increasingly relevant and is expected to encourage better digital economic comprehension.
The Tarjih and Renewal Assembly hopes for continued education on crypto to help the public understand crypto as a sharia-compliant investment instrument. This decision adds depth to the crypto debate in Indonesia following the 2021 Indonesian Ulema Council fatwa that prohibited crypto as a transaction tool.
Clarity on the sharia viewpoint is expected to boost Muslim investor confidence in crypto as an investment asset, provided it is conducted in a sharia-compliant manner. This implication brings transparency and opportunities for crypto development in Indonesia.
Reference:
- MetroTV, Fatwa Muhammadiyah soal Kripto: Sah untuk Investasi, Edukasi Investor Terus Digenjot. Accessed on March 11, 2026
- Kompas, Fatwa Muhammadiyah tentang Kripto Terbit, INDODAX Dorong Literasi Investasi. Accessed on March 11, 2026
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