Muhammadiyah Issues Crypto Fatwa: It Can Be an Asset, but Only Under Strict Conditions

Jakarta – The Tarjih and Tajdid Council (MTT) of Muhammadiyah’s Central Leadership recently issued a new fatwa regarding the position of crypto within the perspective of muamalah fiqh. In the fatwa it is stated that crypto can be regarded as a legitimate digital asset, but its permissibility is limited with various strict conditions in accordance with sharia principles. The fatwa emerges in response to the rapid development of the digital economy and the increasing number of crypto investors in Indonesia, which rose drastically to 20.16 million investors in the first half of 2024. ‘The Tarjih and Tajdid Council of Muhammadiyah’s Central Leadership (PP Muhammadiyah) deems it necessary to promptly provide legal certainty (hukm al-waqi’) in order to respond to the dynamics of this digital finance for the sake of public welfare,’ quoted from the Fatwa signed by the Chairman of MTT PP Muhammadiyah, Hamim Ilyas on Friday (6 March 2026). In the fatwa’s explanation, it is stated that crypto assets can be positioned as property recognised in fiqh because they have value and benefits. The fatwa states: ‘Crypto assets meet the criteria in the definitions above because they have utility (manfaat) desired by the public, can be stored in a digital wallet, and have a socially recognised economic value (’urf), thus their status is valid as mal mutaqawwam.’