The purpose of this chapter is to evaluate how a company should report cryptocurrency investment on their financial statements. In dealing with it, the research problems address the status of positive law and Islamic law in cryptocurrency and how the current economy responds to cryptocurrency. Qualitative descriptive approach and literature review with content analysis method using NVivo 12 plus software are used. The data for this study were obtained from interviews and a review of documents. The finding shows that investments in cryptocurrency held by the companies can be treated as investments in equity with minor adjustments. The content analysis conducted shows that stakeholders are neutral toward this issue. This chapter proposes a standard on how cryptocurrency should be treated in financial report under Indonesian Sharia-based Statement of Financial Reporting Standards/PSAK Syariah since the transaction of cryptocurrency investment has not been accommodated in financial reporting standard in Indonesia.
Wicaksono Ahmad Tibrizi Soni, Mufraini Arief, Titis Miranti, Muttaqien Muhammad Khaerul
Abstract The study explores the most powerful between Bitcoin and Gold in boosting the Shariah Equity Index in Malaysia, the United Arab Emirates, China, Indonesia, The United States of America (USA), Japan, Oman, and Saudi Arabia in the short and long term. The study uses analysis of the first and second stages of the Granger Causality Test and Vector Error Correction Model (VECM), then Impulse Response Function (IRF) and Variance Decomposition (VDC) over the period 2013 to 2021. The finding proves that only Gold can affect the Islamic Equity Index in the short term, then Bitcoin and Gold proved to contribute equally to the Islamic Equity Index in the long term. However, Bitcoin has the potential to provide positively correlated shocks and dominate the value of Islamic equity indices in the long term. The results demonstrate that government intervention is decisive in maintaining the stability of the Shariah Equity Index from future Bitcoin threats. The study’s finding has practical implications for Islamic capital market Investors, Managers, and Authorities.
Non-fungible Token atau NFT telah mengambil perhatian masyarakat umum. Sekarang, publik berlomba-lomba untuk mencari cara untuk menjual dan membeli NFT sebagai bentuk investasi. Fenomena ini memiliki risiko dan peluang. Untuk itu, penelitian hukum ini akan menganalisis NFT dengan regulasi yang telah ada. Penelitian ini menggunakan metode penelitian doktrinal. Penelitian ini difokuskan untuk membahas potensi NFT secara hukum dan apakah hukum nasional siap untuk perubahan ini. Penelitian ini juga menunjukkan adanya pelanggaran kekayaan intelektual (hak cipta) yang selalu diperdebatkan di NFT. Oleh karena itu, masyarakat harus dididik sebelum mencoba mendalami NFT. NFT cenderung menjanjikan tetapi menurut penelitian ini, NFT memiliki beberapa celah yang dapat mengakibatkan masalah hukum seperti penipuan, pencucian uang, dan penghindaran pajak. Maka, pemerintah perlu mengambil tindakan pencegahan dan pengawasan di pasar NFT untuk memastikan keamanan serta tidak terjadinya pelanggaran saat menggunakan platform NFT.
The objective of this paper is to analyze the debate about cryptocurrency as money from an Islamic point of view. Money in Islam that is based on urf of custom has also some requirements, such as its stability. Some fatwas in Indonesia regarding the legitimacy of cryptocurrency must be evidenced with an empirical-based. The study used 25 cryptocurrency prices and related information. By employing ARCH and GARCH, the study revealed that cryptocurrency is hugely volatile and, thus, does not fulfill such criterion as money from an Islamic perspective, and is normally used for speculation. Hence, this study suggests that cryptocurrency is still reluctant to be used for a transaction.
Purpose This study examines the dynamics of the comovement and causal relationship between conventional (Bitcoin, Ethereum and Binance coin) and Islamic (OneGram, X8X token and HelloGold) cryptocurrencies. Design/methodology/approach This study uses wavelet coherence approach to examine the time-varying lead-lag relationship between conventional and Islamic cryptocurrencies. Furthermore, the authors use BEKK-GARCH model to estimate the optimal weights, hedge ratio and hedging effectiveness in pre-COVID-19 and during the COVID-19 period. Findings The authors find no significant comovement in pre-COVID-19. However, the authors find significant positive comovement in conventional and Islamic cryptocurrencies at the beginning of the pandemic, and in most cases, conventional cryptocurrencies are leading. X8X and HelloGold have no/weak correlation with conventional cryptocurrencies, implying that investors can diversify the risk by making an Islamic and conventional cryptocurrencies portfolio. The authors also calculate the optimal weights, hedge ratio and hedging effectiveness using the BEKK-GARCH model. Based on the optimal weights, for the portfolios of conventional–Islamic cryptocurrencies, investors are suggested to increase their investment in Islamic cryptocurrencies during the COVID-19 than normal period. The results of hedge ratios show that hedging costs are higher during COVID-19 than before. Practical implications The findings of the paper offer several practical policy implications for investors, portfolio manager, Shariah advisors and policymakers pertaining to asset allocation, risk management, forecasting and diversification. Specifically, investors can maximize the risk adjusted returns of their conventional cryptocurrencies portfolio by adding some portions of Islamic cryptocurrencies. Considering the comovement is time-varying, investors/manager should adjust their investment strategies frequently. For the entrepreneurs in crypto-industry, it is advised to introduce new Islamic cryptocurrencies, as it has a huge growth potential because of their distinct features and performance. Originality/value This is the first study that explores the linkages between conventional and Islamic cryptocurrencies, therefore this study extends the literature of Islamic finance, stablecoins and cryptocurrencies in pre-COVID-19 and during COVID-19 period. The study results provide insights to conventional crypto investor on how to manage their portfolio during normal and turbulent period.
This paper investigates the impact of the realized volatility of positive and negative intraday Bitcoin returns on the sensitivity of Shariah-compliant stocks’ orthogonalized returns. We identify the impact in different market states and find that Bitcoin’s upside volatility negatively affects the returns of Islamic equities. The paper contributes to uncovering the properties of a niche Islamic Emerging Asian equity market. The findings offer important implications for investors’ diversification strategies.
This research considers a new dimension of the effects of the underground sector by examining the spillovers on cryptocurrency holdings. Cryptocurrencies offer a relatively greater ability to dodge taxes and ensure the anonymity of holders, providing attractive avenues for underground operators to stash their informal-sector earnings. Our results, based on data from more than 50 nations, show that a greater prevalence of the underground economy in a nation is indeed associated with greater cryptocurrency holdings. This result holds across an alternative measure of the shadow economy, and when the bi-directional causality between the shadow economy and cryptocurrency holdings is considered. In other noteworthy findings, greater FDI crowded out cryptocurrency holdings, while greater financial globalization and greater economic uncertainty, ceteris paribus, increased them.
Money has undergone numerous form changes throughout history, and as a replacement for the current system, it has started to take on a digital form. The newest kind of money is a cryptocurrency, which was created decentralized from any central authority. The range of applications for cryptocurrency is expanding daily. One of the most widely used cryptocurrencies is bitcoin, which was launched in 2009, ruled the cryptocurrency market, and caught the attention of the general public with its quick price increase. Early in 2018, the cryptocurrency market was worth more than $800 billion. The majority of cryptocurrency users seek to benefit from rising cryptocurrency values. These actions, however, do not adhere to the principles of cryptocurrencies. In terms of Islamic law, cryptocurrencies also present issues with legitimacy for users who are Muslims (Fiqh). Some Islamic scholars believe that cryptocurrencies are halal, notwithstanding the claims of many religious organizations and Islamic experts that they are haram. Descriptive analysis and content analysis are used in this paper. The findings of this study suggest that using Bitcoin and other cryptocurrencies are forbidden in Islam. Islam prohibits consciously trying to make money off the difference between buying and selling currencies, as this is considered riba.
The use of blockchain technology in financing has been based on its high benefits of efficiency and transparency. However, not many in-depth discussions have been done on such blockchain utilization for Islamic social finance or the metaverse. This paper further explores these three areas of blockchain, the metaverse and Islamic social finance by proposing the use of blockchain and the metaverse for social projects of providing education to the underprivileged with the use of Islamic social finance instruments. In fulfilling this objective this research will explain how blockchain technology was applied in Islamic social finance through the case study of Blossom Smart sukuk, thereafter the opportunities for education under Islamic financial principles through blockchain in metaverse will be explored. The authors believe that further innovation in this area would see renaissance in Islamic social finance both in the real world and in metaverse.
Purpose The paper examines the intent to adopt blockchain-facilitated Halal traceability (BFHT) scheme in Indonesian firms' Halal food supply chain (SC). This study integrates Halal-focused attitude, innovation diffusion and institutional theories to construct the model. Design/methodology/approach Data collection uses a simple random sampling method. Respondents are company leaders with experience and knowledge regarding Halal SC. The SEM-PLS approach was applied to test the hypothetical structure. Findings The intent to adopt BFHT is considerably affected by perceived attractiveness, as perceived attractiveness is considerably affected by institutional forces, which are significantly influenced by Halal-focused attitude. Firms that follow a completely Halal-focused attitude show higher awareness regarding institutional forces that motivate them to adopt a BFHT. Originality/value This research is among the initial works regarding Halal SCs that integrate Halal-focused attitude, innovation diffusion and institutional theories to recognise firms' intent to adopt a BFHT scheme.
Khairil Faizal Khairi, Nur Hidayah Laili, Hisham Sabri, Azuan Ahmad · 6 authors
Zakat in Islam has historically been a vital institution in fulfilling religious needs and social welfare. Its effectiveness in medieval and modern Islam is evident. However, this institution is seemingly not without inefficiencies. Ineffectiveness distribution process and lack of transparency in the zakat management are commonly cited as key impediments (bin Khatiman et al., 2021). Blockchain is expected to solve these issues due to its ability to record and trace every transaction, allowing administrators to discharge their accountability to zakat stakeholders. Thus, this study intended to develop a zakat collection blockchain system with the aim to provide economical and integrated continuous real-time zakat transactions, transparency and traceability by developing smart contracts in zakat management. The study employed four stages of process based on waterfall model starting from the interview session and analyse of the standard operating procedure (SOP) on zakat collection in the Zakat Collection Centre or Pusat Pungutan Zakat-Majlis Agama Islam Wilayah Persekutuan (PPZ-MAIWP). Then, design requirement specification (DRS) is employed after being reviewed and approved by PPZ-MAIWP. The results show that the development of blockchain in the zakat collection system could be eradicating extreme poverty and boost shared prosperity among the community in the country. The study contributes through a transparent and reliable environment for exchanging data and carrying out transactions through a decentralized digital ledger technology to record anything of value and as a result able to ensure transparency, reliability, trust ability and traceability of the zakat transactions.
Fauzan Muhammadi, Nor Fahimah Binti Mohd Razif, Rahimin Affandi, Abdul Rahim
Currently our life has stormed by fast development of meta-technology that could transform physical being into digital verse.This fact has affected many issues, one of which is mortgage activities.The problem is that we tend to follow debating issues on its several controversies and not trying to foretell on what side it could be a shariah compliant.The study aims to forecast meta-mortgage activities in accordance with Islamic Shariah.This article uses qualitative study which employs secondary data.Those data analyzed through desk activities and it narrated descriptively in consecutive logical structure.There are two issues that have been discussed by Islamic scholars on Islamic mortgage, both are utilization of cryptocurrency and the Non-Fungible Tokens (NFTs).The based issue on cryptocurrency is its volatility and the issue behind NFTs is its legal ownership that frequently has been violated.The adaptation of metaverse on mortgage activity will not occur when both mentioned-issues are not legally cleared.Thus, the possible image of the adaptation is likely in the far future, it depends on how far the legal regulation (laws and fatwas) will answer the shariah compliant on metamortgage.
Reza Saleh, Reza Saleh, Mohammad Syamsul Maarif, Lukman M. Baga, Herien Puspitawati
This quantitative study analyzes the transformational and transactional leadership styles in turbulent conditions on the performance of Tax Service Offices (TSOs) in Indonesia, involving 774 respondents. The analysis was conducted using Structural Equation Modeling (SEM), with the dyadic relationship of the Leader-Member Exchange (LMX) theory between Leaders and Followers (L-F). The results show that most TSO leaders are male, have a master’s degree aged > 50 years and have held the position for more than two terms, while the characteristics of the employees are more diverse in terms of their sex, education, and age. The model shows adaptive and responsive behavior as a performance mediation of competency, transformational leadership, and transactional leadership. Conversely, turbulence and transactional leadership directly influence performance. A dyadic leader-follower relationship exists in the context of leadership style during turbulence conditions in public organizations. This study analyzes the transformational and transactional leadership styles in turbulent conditions on the performance of Tax Service Offices (TSOs) in Indonesia. The analysis used structural equation modeling (SEM). Primary data were collected by distributing structured questionnaires, both online and face-to-face, to 744 respondents consisting of 64 TSO leaders and 710 followers in the form of TSO employees and tax-payers. The model shows adaptive and responsive behavior as a performance mediation of competency, transformational leadership, and transactional leadership. Conversely, turbulence and transactional leadership directly influence performance, encouraging the formation of new structural positions, TSOs, or autonomous bodies, the decentralization of HR authority, and developing soft-skill capacity building programs and performance appraisal basis (leadership, adaptive, innovative, and responsive behavior) for TSO leaders. There is a dyadic leader-follower relationship in the context of leadership style during turbulence conditions in public organizations. Keywords: leadership style, leader-follower dyad, transformational leadership, transactional leadership. DOI: https://doi.org/10.55463/hkjss.issn.1021-3619.60.64
İslam ülkelerinin ikinci dünya savaşı sonrasında bağımsızlıklarını kazanmaları ile İslami finansın 1970’li yıllardan itibaren çağdaş anlamda başladığı gelişiminde politik ekonomi önemli bir rol oynamıştır. İslami finans dayandığı iktisadi temelleri üzerinde yükselirken hem geleneksel finansın araçlarından hem de gelişmekte olan dijital teknolojilerden yararlanmıştır. Özellikle 2008 küresel finansal kriz sonrası yaygınlaşan finansal teknolojiler tüm finans sektörünü dönüşüme uğratmaya başlamıştır. İslami finans sektörü ve İslami finansın ekonomi politiği gelişmekte olan finansal teknolojilerden yararlanarak bu alana yeni bir bakış açısı kazandırmıştır. Geleneksel finansal teknolojilere ek olarak blokzinciri ekonomisi üzerinde yükselen merkeziyetsiz finansın ortaya çıkışı tüm dünyaya sistemik bir öneri getirirken İslami finans için de yeni yollar açmıştır. Bu çalışmada İslami finansın ekonomi politiği çerçevesinde merkeziyetsiz finans uygulamaları, özellikle merkeziyetsiz otonom organizasyonlar işlenmektedir. İslami finansın, finansal teknolojilerin sunduğu imkânlar ile daha iyi bir hizmet alternatifi sunacağı düşünülmektedir. Çalışma, İslami finans ve merkeziyetsiz finans kesişiminde ortaya çıkan uygulama alanının “Merkeziyetsiz İslami Finans” kavramsallaştırmasıyla ele alınabileceğini önermektedir. Bu bağlamda İslam ülkelerinin Merkeziyetsiz İslami Finansı politik ekonomi çerçevesinde değerlendirebileceği aktarılmaktadır. İslam ülkelerinin girişimci devlet anlayışıyla İslami finansın ekonomi politiğinde merkeziyetsiz finans uygulamalarının gelişimine öncülük edebileceği savunulmaktadır. Bu yaklaşım dijitalleşmenin yükselişi karşısında İslami finansın daha katılımcı anlayışla birey, devlet ve toplum nezdinde etkin bir şekilde yaygınlaşmasını ve uygulanmasını mümkün kılabilecektir. Merkeziyetsiz İslami Finans, iktisadi temelleri, dijital olanakları ve dağıtık yönetişim anlayışıyla yeni bir tasavvur vaat etmektedir.