THE LEGAL STATUS OF NON-FUNGIBLE TOKENS FROM AN ISLAMIC PERSPECTIVE

Abstract

This study investigates the legal status of Non-Fungible Tokens (NFTs) from an Islamic perspective. NFTs, as unique digital assets recorded on blockchain, raise complex questions in Shariah due to their intangible nature, potential for speculation, and content-related ethical concerns. The research analyses classical and contemporary juristic views, fatwas, and scholarly writings to determine whether NFTs can be classified as lawful property and traded accordingly. Findings reveal divergent scholarly opinions: some argue NFTs fulfill the requirements of a valid sale (bayʿ) and can be considered māl (property), while others highlight violations of key Islamic commercial principles, including uncertainty (gharar), unethical content, and the use of impermissible cryptocurrencies. This paper proposes a middle-ground view of conditional permissibility in which NFTs are deemed Shariah-compliant only if the underlying content, transaction method, and purpose align with Islamic legal and ethical standards. The study offers a framework for Muslim stakeholders to evaluate NFTs based on content, ownership, contract clarity, and societal benefit, supporting a responsible and principled engagement with digital assets.