MUHAMMADIYAH.OR.ID, YOGYAKARTA — Muhammadiyah Central Board, through its Council for Religious Opinion and Reform, convened a National Halaqah on cryptocurrency investment law at Ahmad Dahlan University on Saturday (28/2).
The gathering examined the rapid development of digital assets. It also raised the possibility of revising a 2022 fatwa that declared cryptocurrency investment forbidden (haram). Hamim Ilyas, chairperson of the council, said changes to religious rulings are permissible when they aim to secure public welfare.
He explained that Muhammadiyah’s manhaj tarjih provides a framework for adapting islamic legal reasoning to evolving realities in economics and technology. Although the organization has issued a prior ruling on crypto, he noted that new developments require continuous study.
“If recent changes show that previous ruling no longer brings benefit, then revising it is part of our methodology,” Hamim said. He added that Muhammadiyah history shows similar adjustments in determining Islamic calendar methods, each intended to better serve the community.
Economic Complexity and Market Risks
In a separate address, Anwar Abbas, a Muhammadiyah chairman, underscored the complexity of cryptocurrency from a sharia economic perspective. In Indonesia, crypto assets are not recognized as legal tender. However, regulators classify them as tradable digital commodities.
Anwar raised concerns that many crypto assets lack tangible underlying value. He also warned about extreme price volatility and speculative behavior in the market. According to him, trading practices driven by leverage and short-term gains can resemble gambling.
“When investment is dominated by guesswork and chance, it risks moving toward gambling,” he said.
Therefore, he called for stronger regulatory oversight and a shift in market behavior. The central question, he argued, is whether cryptocurrency will remain normatively prohibited or whether its system can be refined to align with Islamic economic principles.
The halaqah featured scholars, Islamic jurists and financial regulators who offered multidisciplinary perspectives. Muhammadiyah hopes the forum will provide a solid scholarly basis for its future stance while strengthening public literacy in the fast-changing digital economy.
