Muhammadiyah Establishes Cryptocurrency Investment as Permissible; Industry Players Respond
The Board of Islamic Jurisprudence and Renewal of Muhammadiyah’s Central Leadership has formally issued a new fatwa regarding cryptocurrency assets in March 2026. In this decision, Muhammadiyah stated that cryptocurrency assets can be considered valuable digital assets meeting the criteria of Islamic jurisprudence’s mal mutaqawwam (assessable property), and therefore are permissible to utilise as an investment instrument.
However, the fatwa also emphasised that in Indonesia, cryptocurrency is not permissible for use as a means of payment. This is due to the extremely high price volatility and the potential for causing harm in the economic transactions of the community.
In response, Antony Kusuma, Vice President of Indodax, assessed that Muhammadiyah’s perspective provides important reference material for the Muslim community in understanding the position of cryptocurrency assets from an Islamic economic perspective.
“This Muhammadiyah fatwa provides clarity for Muslim investors that cryptocurrency assets can be viewed as an investment instrument within an Islamic framework. This perspective also becomes an important momentum for encouraging Indonesia’s increasingly mature cryptocurrency ecosystem,” said Antony in an official statement on Wednesday (11 March 2026).
Antony added that whilst cryptocurrency has been declared permissible for investment purposes, investors must remain cautious regarding the volatility characteristics of digital assets. Literacy concerning risk management and understanding of asset fundamentals are the key to investing in digital assets.
In the March 2026 fatwa, Muhammadiyah detailed transaction limitations consistent with Islamic principles, establishing that this position serves as an oasis for the Muslim community in Indonesia, which represents the world’s largest Muslim population. The clarity of Islamic perspective on digital economic instruments such as cryptocurrency becomes increasingly relevant with the growing adoption of financial technology.
Previously, the Indonesian Ulama Council (MUI) through the results of the 2021 Ulema Ijtima’ also stated that cryptocurrency can be considered permissible to buy and sell as a commodity or asset, provided it meets the conditions of sil’ah (commodity) under Islamic law, has clear underlying value, and tangible economic benefits.
Data from the Financial Services Authority (OJK) shows a positive trend in the number of cryptocurrency investors in Indonesia, reaching approximately 20.70 million users by January 2026. This growth demonstrates that digital assets are increasingly being considered as a primary investment alternative amid global economic dynamics.
As a pioneer of crypto exchanges in Indonesia, Indodax reaffirms its commitment to continuing to strengthen literacy and responsible investment education. Currently, Indodax is registered and supervised by the OJK with the implementation of strict security standards such as Know Your Customer (KYC) and Anti-Money Laundering (AML) to ensure the safety of investor funds.