Jakarta \u2014 The Fatwa Council and Renewal Board of Muhammadiyah\u2019s\nCentral Leadership has issued a fatwa in March 2026 stating that\ncryptocurrency assets can be regarded as valuable digital assets meeting\nthe criteria of Islamic jurisprudence (fiqh mal mutaqawwam), and\ntherefore can be utilised as investment instruments.<\/p>\n
The fatwa affirms that cryptocurrency is permissible for use as an\ninvestment instrument. However, cryptocurrency is not permissible as a\nmeans of payment in Indonesia.<\/p>\n
Muhammadiyah considers the use of cryptocurrency as a payment method\ninappropriate owing to high price volatility and the potential to cause\nharm in transactions.<\/p>\n
\u201cThis Muhammadiyah fatwa provides clarity for Muslim investors that\ncryptocurrency assets can be regarded as investment instruments within\nan Islamic framework,\u201d said Antony in a written statement on Wednesday\n(11 March 2026).<\/p>\n
According to Antony, this perspective also represents an important\nmomentum for advancing Indonesia\u2019s increasingly mature cryptocurrency\necosystem. However, as investment instruments, cryptocurrency assets\nretain volatile characteristics that investors must understand.<\/p>\n
\u201cTherefore, literacy regarding risk management and understanding of\nasset fundamentals become important in investing in digital assets,\u201d\nAntony stated.<\/p>\n
Conversely, certain practices are considered inconsistent with\nIslamic principles. These include futures trading, the use of\ninterest-bearing debt through leverage or margin trading, market\nmanipulation such as pump-and-dump schemes, and short selling.<\/p>\n
The fatwa has emerged amidst growing discussion within the Muslim\ncommunity regarding the permissibility of cryptocurrency asset use.<\/p>\n
Indonesia is the world\u2019s most populous Muslim-majority nation. With\napproximately 242 million Muslim inhabitants, clarity on Islamic\nperspectives regarding digital economic instruments such as\ncryptocurrency is increasingly relevant to society.<\/p>\n
Nevertheless, the Indonesian Ulema Council (MUI) provides an\nexception that cryptocurrency can be considered permissible for trading\nas a commodity or asset provided it meets the requirements of\nmerchandise (sil\u2019ah) under Islamic law, possesses clear underlying\nvalue, and demonstrates tangible economic benefit.<\/p>\n
As these developments progress, public interest in cryptocurrency\nassets continues to rise.<\/p>\n
Data from the Financial Services Authority (OJK) shows that the\nnumber of cryptocurrency investors in Indonesia reached approximately\n20.70 million users as of January 2026.<\/p>\n
INDODAX states it will continue promoting increased investment\nliteracy amongst the public.<\/p>\n
The company notes that it is registered and supervised by the OJK,\nimplementing security and compliance standards such as Know Your\nCustomer (KYC) and Anti-Money Laundering (AML) to support a safe,\ntransparent, and sustainable cryptocurrency trading ecosystem.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/muhammadiyah-issues-fatwa-on-cryptocurrency-indodax-pushes-investment-literacy-1773205015", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }