Cryptocurrency is a digital or virtual currency, which does not have a physical form like fiat money. This crypto currency can only be used through devices such as PCs, laptops, smartphones and other devices that connected to the internet. There are several advantages in a crypto system that uses blockchain system, such as transaction security, convenience, speed and can be used across countries and continents, however cryptocurrency which is currently circulating also still have weaknesses, including there is No. supervisory authority, even many countries have disagreements over the legality of this cryptocurrency. The debate about pro and contra regarding to the use of cryptocurrency becomes dynamics among the experts including the scholars who have study from Islamic point of view. This reseach aims to examine the dynamics of using cryptocurrency from ushul fiqh point of view, where the methods which used in this research are al-qur’an, al-Hadits, Qiyas and Sad-Adzariyah. Basically the use of cryptocurrency is allowed to meet cetain conditions that is by removing batil elements as in Quran surah An-Nisa verse 29, those batil elements are gharar and mayshir. Moreover, cryptocurrency must also has clear legality in a country for security in their use.
The purpose of this research is to determine whether or not cryptocurrencies are legitimate in Islam as both a currency and a commodity. This is research done in a library. The research is descriptive-analytical and uses Jasser Auda's Islamic legal philosophy approach to try to explain cryptocurrency law. The findings demonstrate that, from the standpoint of Islamic legal philosophy, the law governing cryptocurrency as a currency is comprehensive (tafsil). Whether it is halal or not by looking at how the goal was achieved, specifically (benefit). If the cryptocurrency has clear benefits, such as the existence of underlying assets and the government's role in realizing the general benefit (maslahah ammah), it can be considered halal. Similarly, cryptocurrencies that lack clear regulations and are not backed by assets will be haram due to the possibility of mafsadat. Despite the fact that cryptocurrencies are regarded as al-Ma'l al-ma'nawiyyah because they do not conform to the objectives of sharia in assets (maqashid as-shari'ah fi al- mal), the law of cryptocurrencies as assets (crypto assets) is not valid. This research certainly has limitations, especially related to field data, namely interviews with cryptocurrency business actors. Therefore, to develop further research, not only juridical research but also juridical-empirical research.
Anak Agung Gde Agung, Irna Yuniar, Robbi Hendriyanto
The halal industry today has achieved rapid development. Halal product is mandatory for Muslims and a big business for Indonesia. For others, it affirms the product's quality assurance and becomes a trending lifestyle. The product owner must submit an application and undergo several processes to obtain a halal certificate. However, there are challenges in the certification process and documentation. The proposed system automates the flow between certification processes through digital signing and stores the certificate and fatwa file. The study investigates the utilization of blockchain to manage the process and the integration of decentralized storage (IPFS) to store the digital version of the fatwa and certificate. A smart contract is designed and deployed on the Ethereum blockchain, and the transaction time and cost are analyzed. A smart contract enforces that certain actions are executed once the required conditions are fulfilled. The proposed system would cost 24.6 USD and require 227 seconds on average for the system setup. Each submission requires 9.86 USD and takes 92 seconds on average. Verification is free, and the average result can be obtained in one second. The appointed officer sets each entity to interact with the contract, and the digital documents (fatwa and certificate) are available online using IPFS. Progress of the certification is transparent to the public, increasing the public's trust. The study demonstrates a smart contract's capability to manage a product's certification process.
Waqf development in Malaysia benefits the economy and society, mostly in terms of facilities, education, investment, and others. Due to the massive development of the waqf industry, digitalization is deemed as a facilitative instrument in the operation of waqf. With the usage of digital platforms, the collection of waqf funds becomes more efficient and widely dispersed among Muslims. In this context, blockchain has become a new phenomenon, functioning as a ground-breaking innovation connected to bitcoin. The core idea behind a blockchain is that its users can access the ledger independently of a third party. Additionally, the blockchain counts all network nodes equally, taking human and computer communication into account without any special treatment or discrimination. Without realizing it, several waqf institutions have already applied this approach using their own platform. Therefore, this study aims to systematically review the potential application of blockchain in waqf institutions by referring to previous applications in other countries in the Middle East and Asia such as Oman, Bahrain, United Arab Emirates, Singapore, Indonesia, and Malaysia. Methodology wise, this paper employs the Systematic Literature Review which consists of the processes of identification in evaluation of the data from September 2022 until October 2022 by using related keywords to study. Secondly, is screening process which entails the process of choosing articles based on inclusion and exclusion criteria. This study screened all the 49 selected articles by choosing the criteria for articles selection which is done automatically based on the sorting function available in the database. Thirdly, eligibility which the authors manually monitored the retrieved articles to ensure all the remaining articles (after the screening process) are in line with the criteria. Lastly, the quality appraisal which to ensure that the substance of the articles was of high quality. The findings are important for waqf institutions to realize the potential benefit of blockchain in improving the efficiency of waqf operations towards attaining sustainable socio-economic development.
Ari Okta Viyani, Wahyu Adi Mudiparwanto, Syah Ammar Brawijaya Siraj
Non-fungible token (NFT) is a new type of blockchain-based token that is unique and cannot be divided. The existence of NFT technology provides benefits for the realization of a digital economy in the future. However, not much research has been done on this technology. Apart from that, the adoption and level of legitimacy of NFT technology for economic actors in Indonesia is also still very limited. Therefore, the role of adoption and legitimacy for economic actors in Indonesia needs to be increased, considering the many benefits of this technology for the realization of a digital economy in the future. To be able to increase the level of adoption and legitimacy for economic actors in Indonesia, the first thing that needs to be done is to know the basic reasons someone wants to accept (legitimize) and then use (adopt) the technology. If the basic reasons are known, the government can implement policies that are able to encourage higher technology adoption. This research uses the ZMET (Zaltman Metaphor Elicitation Technique) technique. This method is able to reveal a person's subconscious thoughts, which are sometimes hidden during interviews.
The discussion of fiqh and fatwa studies on cryptocurrency is still widely discussed both in Indonesia and abroad. Differences of opinion regarding cryptocurrencies are also often found so it is interesting to discuss. This research aims to find out the legal istinbãth method used by fatwa institutions in determining the cryptocurrency issue. This research is a qualitative study with library data collection techniques. The Malaysian state requires a report on every transaction, and State Bank of Malaysia is also not fully responsible for the use outside the crypto wallet service provider. Middle Eastern fatwa institutions such as in Egypt, Turkey, and Palestine prohibit cryptocurrencies because they are illegal, there is no direct supervision from the government or authorities so that money laundering can occur, and cryptocurrencies can also cause gharar. Fatwa institutions in Indonesia differ in determining the law of cryptocurrency. MUI's fatwa prohibits cryptocurrency according to government regulations and the sad al-dzariah legal istinbãth method, as well as the Muhammadiyah Tarjih Council which also prohibits cryptocurrency. The East Java PWNU Bahtsul Masail Institute prohibits cryptocurrency, while the Yogyakarta Special Region PWNU Bahtsul Masail Institute allows it, both institutions use the ilhãqi method because they refer to classical and contemporary books.
The decision of the Ijtima Ulama of the VIIth Indonesian Fatwa Commission of the Indonesian Ulema Council (Majelis Ulama Indonesia) in 2021 considers cryptocurrency as a digital currency and also as a commodity or tradable asset. However, there are differences in the law of cryptocurrency as a currency and as a commodity. This research will elaborate on the analysis of legal sources and legal ‘illat used in the fatwa and the reasons why there are legal details in the fatwa. This research includes qualitative research in the form of library research. The data analysis technique used in this research is descriptive-analytical with a normative juridical approach to Islamic law. The legal differentiation that occurs in the status of cryptocurrency as a currency and as a commodity is also inseparable from the provisions of an object that can be used as currency (naqd) and commodity (sil’ah). If cryptocurrency is considered a currency, then the law is absolutely haram, while as a commodity, the law is permissible when it meets the conditions that have been mentioned.
The concept of Blockchain-based Smart Sukuk involves the use of Blockchain technology and smart contracts in the issuance and execution of Sukuk. Smart Sukuk and Blockchain: One of the innovations of Blockchain systems is smart sukuk. Effective issuance of smart sukuk allows small and medium enterprises (MSMEs) to take advantage of it. Because it increases transparency and eliminates the possibility of fraud or speculation in sukuk transactions, Blockchain is a technology that builds trust between issuers and investors. Smart Contracts: Smart contracts run on the Ethereum Blockchain and allow smart sukuk to be automated and executed digitally. Smart contracts eliminate some of the components and parties involved in conventional sukuk, such as trustees, registrars, payment agents, calculation agents, arrangers, listing agents, transfer agents, and security depository. MSME Financing Potential: Blockchain-based Smart Sukuk has the potential to support the development of MSMEs and the deepening of the Islamic financial sector. Efficiency and Transparency: The use of Blockchain technology in Smart Sukuk can increase efficiency, transparency, and cost, allowing companies to utilize sukuk structures more efficiently
Muhammad Wildan Habibi, Luthfiah Nurul Izza, Rahma Thalita
Uang sebagai alat tukar didalam kegiatan ekonomi telah mengalami banyak perubahan. Keberadaan uang yang semula terbuat dari hal-hal sederhana telah sampai kepada saat ini dimana uang hanya berupa kode digital didalam dunia virtual. Bitcoin sebagai cryptocurrency merupakan jenis uang revolusioner yang mempunyai nilai tukar yang tinggi. Keberadaan cryptocurrency sampai saat ini masih diperdebatkan penggunaannya di dunia baik dari segi kebijakan ekonomi keuangan ataupun segi syariat Islam. Metode penelitian yang digunakan dalam penelitian ini adalah metode studi kepustakaan (Library Research), dengan menggunakan pendekatan hukum normatif dengan mengkaji dokumen-dokumen yang ada dengan cara deskriptif kualitatif. Data dikelola menggunakan teknik pengumpulan data bahan sekunder dan bahan tersier. Hasil dari penelitian ini menjelaskan bahwa cryptocurrency adalah mata uang digital yang terlepas dari otoritas pemerintah pusat. Fungsi cryptocurrency dapat berjalan dengan ditopang oleh sistem ledger Blockchain yang berbasis peer to peer oleh para miners yang mampu menyelesaikan masalah besar dalam keuangan digital yaitu double spending problem dan byzantine general problem. cryptocurrency yang memiliki proteksi serta privasi yang tinggi, mengakibatkannya banyak disalahgunakan untuk kegiatan ilegal. Indonesia demi menjaga kedaulatan Pancasila melarang penggunaan cryptocurrency sebagai alat tukar, tetapi mengakuinya sebagai aset kripto yang dapat diperjualbelikan sebagai komoditi. Penelitian ini bertujuan untuk menjelaskan hukum transaksi pembayaran cryptocurrency dalam prespektif Majelis Ulama Indonesia dan Nahdlatul Ulama, menjelaskan Dasar Hukum Transaksi Pembayaran Melalui Cryptocurrency, cara transaksi pembayaran melalui cryptocurrency, cryptocurrency dalam perspektif hukum islam, menjelaskan jual beli mata uang kriptografi sebagai komoditi aset digital dan perbedaannya dengan jual beli komoditi syariah di Indonesia, menjelaskan pandangan fiqh mengenai jual beli mata uang kriptografi sebagai komoditi aset digital. Penelitian ini dilakukan dengan kerangka berpikir bahwa sebagai bentuk pengamalan teori seorang muslim, harus melaksanakan hukum Islam sebagai konsekuensi logis dari pengakuannya. Pemahaman yang jelas tentang kehalalan penggunaan cryptocurrency baik sebagai mata uang, maupun sebagai komoditi sangat dibutuhkan sebagai penunjuk arah bagi seorang muslim. Aset kripto ditemukan mempunyai karakteristik layaknya komoditi nyata pada umumnya sehingga boleh diperjualbelikan untuk investasi selama menjauhi kegiatan spekulatif tidak mengandung gharar, dharar dan tidak bertentangan dengan Undang-Undang nomor 7 tahun 2011 dan Peraturan Bank Indonesia nomor 17 tahun 2015. serta memenuhi kaidah-kaidah syara yang dalam hal ini ditentukan oleh Majelis Ulama Indonesia dan Nahdlatul Ulama.
 Kata kunci: Cryptocurrency, Majelis Ulama Indonesia, Nahdhatul Ulama, pembayaran.
One of the technological advances found in the economic field is the emergence of crypto currency or also known as cryptocurrency, one type of which is ethereum. The progressivity of these transactions makes transaction activities more efficient because they can be applied virtually. When viewed in terms of profit obtained, ethereum can provide significant returns, but on the other hand also has a very high potential risk in terms of investment. The extreme volatility of ethereum digital transactions allows for spikes in price increases and decreases very quickly. The high volatility in question is a reflection of the level of risk faced by investors. This research was conducted to review the essentiality of ethereum digital transactions in the perspective of Islamic economics, because these transactions are still experiencing debate both in terms of legality and regulation, especially from the perspective of Islamic economics.
This paper provides a brief explanation of the block chain and the concept of “crypto currency”, followed by an analysis of Bitcoin for permissibility from the point of view of Shari‘ah. The decisions of well-known houses of fatwas were considered, and a number of criteria were developed and adopted with the help of which the Shari‘ah position of a particular crypto currency can be assessed. The article identifi es provisions and decisions that can become the basis for issuing fatwas related to issues that concern many Muslims who care about the permissibility of their earnings.
Zakat and waqf funds in the global scope are equivalent to 1% of the total GDP in the world. However, the usage of zakat and waqf funds is still not optimal. Blockchain could be used to supervise the management of the waqf and zakat. This study has a purpose for the topic development of previous studies related to the usage of blockchain for zakat and waqf management globally. This study used the bibliometric method to gather and analyze the secondary data. The data were collected from the Web of Science (SCI) website from 1979-2023. There were 415 metadata documents found and would be analyzed using R Studio software. The result showed that the majority of the total documents as in previous studies were article type. The co-authorship per paper was 23.13% from 415 documents. The affiliation countries of the authors with the biggest papers were Indonesia and Malaysia. They were also the two words that were most frequently used both in the abstract and in the title of the previous studies.
There has been a huge growth in the value of bitcoin in Indonesia, especially during late 2017. Many people are interested and aware of this phenomenon related to Bitcoin that operates only as a digital system and has no physical existence. This research will further discuss Bitcoin as an investment agreement object. This research uses a normative legal research method with a conceptual approach that refers to the law. This research aims to determine and analyze the comparison of the validity of investment agreements that use Bitcoin as an investment object in several countries. In addition, to find out and analyze the legal protection of the parties who make Bitcoin buying and selling transactions using the Indodax website facility under Indonesian law. The results of this research indicate that there are differences of legal basis to regulate Bitcoin transaction agreements between El Salvador and Indonesia. In El Salvador, the Bitcoin Law is set as the legal basis for regulating Bitcoin transaction agreements. Whereas in Indonesia, the legal basis for regulating Bitcoin transaction agreements is the Commodity Futures Trading Supervisory Agency Regulation No. 5/2019 concerning Technical Provisions for the Implementation of the Crypto Asset Physical Market on the Futures Exchange.
Rahmad Satria Efendi Efendi, Ahda Bina, Luciana Anggraeni
The purpose of this research is to enhance knowledge about the rights related to cryptocurrency law for readers and to provide an understanding of Ustadz Adi Hidayat's views on the MUI fatwa regarding the use of cryptocurrency. This research is used to analyze the comparison between the Indonesian Ulema Council (MUI) fatwa and Ustadz Adi Hidayat's perspective. The research is conducted using a library research method, which involves using literature as a data source. The data collected come from various library materials, scholarly works, books, YouTube, online media, and others related to the discussion of using bitcoin in transactions. The approach used is a normative approach, studying the position of bitcoin as electronic currency.The results of this research are as follows: First, from Ustadz Adi Hidayat's perspective, cryptocurrency is considered haram (prohibited) because it contains elements of harm (dharar) and uncertainty (gharar). Second, the Indonesian Ulema Council (MUI) fatwa states that cryptocurrency is haram due to the presence of harm (dharar), uncertainty (gharar), and gambling (qimar). However, it is deemed legally valid as a medium of exchange if the asset meets the conditions of being a lawful commodity (sil'ah) and has clear underlying assets and benefits.
This study aims to evaluate the impact of cryptocurrency regulations on human rights, with a particular focus on digital rights, privacy, and security. Cryptocurrencies, such as Bitcoin and Ethereum, have rapidly evolved as a new form of decentralized digital finance. However, this growth has raised questions about how cryptocurrencies affect individuals' rights, especially in terms of privacy and the security of personal data. This study employs a normative legal approach and conceptual analysis to explore existing regulations and trends related to cryptocurrency in various jurisdictions. Additionally, the research incorporates a theoretical perspective on human rights to identify potential implications of cryptocurrency regulation on privacy and digital security. The study's findings should shed light on how human rights are affected by the way cryptocurrencies are currently regulated and set the stage for any future legislative adjustments that would be required to strike a balance between personal safety and technological innovation. This research can also assist policymakers and regulators in tightening legal work practices, which will enable advancements in cryptocurrency while upholding individual rights. With the continuous growth in cryptocurrency usage and the growing concerns about privacy and security, this study is relevant in supporting ongoing discussions on how the law can accommodate this innovative technology without compromising human rights.
AbstractSo far, NFTs have been defined as digital tokens that are shaped like ownership certificates for virtual and physical assets. These NFTs are usually traded online and are often paid for using cryptocurrencies, especially Ethereum. However, the problem is that in 2021 the MUI issued a fatwa that cryptocurrency is illegal. This is because it there are elements of qimar, dharar, and gharar. For this reason, it is necessary to study the methodology of Islamic law regarding Non-Fungible Tokens (NFT) through istihsan (juristic preference). This study uses a qualitative approach. The data were collected from library study, documentation and observation. In analyzing the data used descriptive-analytic analysis with the approach used is ushuliyah. This study revealed that from istihsan point of view, transactions using Non-Fungible Tokens are permitted. This is because, from Qiyas Khafi perspective, NFT is known as the underlying assets of the transaction. Up to the operational level, if qiyas khafi is of greater benefit, then qiyas jali may be abandoned. What is used is qiyas khafi to maintain the principles of maqasid shari'a. Therefore, within the istihsan framework, Non-Fungible Token transactions are allowed through qiyas khafi due to an element of greater benefit.Keywords: Non-Fungible Token Transaction; Istihsan; Maqasid Shari’a, AbstrakSelama ini NFT didefinisikan sebagai token digital yang berbentuk seperti sertifikat kepemilikan untuk aset virtual dan fisik. NFT ini adalah biasanya diperdagangkan secara online dan sering dibayar untuk menggunakan cryptocurrency, khususnya Ethereum. Namun yang menjadi persoalan ialah pada tahun 2021 MUI pernah memfatwakan haram penggunaan cryptocurrency karena mengandung unsur gharar, dharar, dan qimar. Untuk itu, diperlukan kajian metodologi hukum Islam tentang Non-Fungible Token (NFT) melalui istihsan. Penelitian ini menggunakan pendekatan kualitatif. Sementara metode pengumpulan data yang dipakai dalam penelitian ini adalah metode literatur, dokumentasi dan observasi. Dalam menganalisis data yang telah dikumpulkan, peneliti menggunakan analisis deskriptif-analitis dengan pendekatan ushuliyah. Hasil penelitian ini menyatakan bahwa dalam tinjauan istihsan, transaksi dengan menggunakan Non-Fungible Token diperbolehkan. Hal ini dikarenakan dalam tinjauan qiyas khafi, NFT dikenal asset yang mendasari transaksi tersebut (underlying assets). Hingga dalam tataran operasionalnya, bila qiyas khafy lebih besar manfaatnya, maka qiyas jaly itu boleh ditinggalkan dan yang dipakai adalah qiyas khafy demi terpeliharanya prinsip-prinsip maqasid syari’ah. Oleh karena itu, dalam kerangka istihsan, transaksi Non-Fungible Token diperbolehkan melalui qiyas khafi dikarenakan adanya unsur maslahat yang lebih besar.Keywords: Non-Fungible Token; Istihsan; Maqashid Syari’ah.
Nur Aisa Hilda, Millenia Jihan Febriana, Amaliah Aisyah N. Kamaru
Hubungan perkawinan di antara pasangan suami istri dapat ditopang dengan sebuah perjanjian, yakni perjanjian perkawinan yang mana isinya ditentukan oleh pembuat yang bersangkutan selama tidak menyalahi peraturan yang berlaku. Perkembangan zaman berpengaruh terhadap alat pembayaran. Alat pembayaran yang sah di Indonesia adalah uang, yakni rupiah. Dewasa ini, eksis alat pembayaran berbentuk digital yang disebut dengan virtual currency di antaranya bitcoin, bitcoin, namecoin, dash, dogecoin, blackcoin, ripple, dan nxt. Sejalan dengan perkembangan tersebut, berdampak pula terhadap pemberian mahar perkawinan. Notaris sebagai pihak yang berwenang dalam membuat perjanjian perkawinan wajib memperhatikan apa yang akan dituangkan oleh para penghadap dalam perjanjian perkawinan yang akan dibuatnya. Penelitian dilakukan dengan menggunakan penelitian hukum, yakni dengan pendekatan perundang-undangan dan pendekatan konseptual. penelitian hukum dilakukan guna menemukan kebenaran koherensi. Dapat disimpulkan bahwa bitcoin tidak dapat dijadikan sebagai mahar perkawinan serta notaris tidak berwenang membuat perjanjian perkawinan perihal mahar bitcoin.
This exploration aims to dissect the influence of herding behavior and overconfidence-bias on investment decisions by millennial generation Cryptocurrency investors in Malang City. This type of research is explanatory research with a quantitative approach. This research aims to test and explain the influence of the direct relationship between the variables herding behavior and overconfidence-bias on investment decisions by cryptocurrency investors through hypothesis testing. This research has a sample size of 99 Millennial Generation Cryptocurrency investors in Malang City which was obtained through distributing a Google Form questionnaire using a purposive sampling technique. This research uses the F-test with the SPSS 23 application. The results of this research show that the herding behavior variable has a significant effect on investment decisions. However, this is different, the overconfidence_bias variable does not have a significant effect on investment decisions by millennial generation Cryptocurrency investors in the city of Malang.
The Islamic finance industry has demonstrated its ability to grow steadily and secure a strong foothold on the international financial scene. Financial technologies (fintechs) are becoming an integrated part of the financial industry at large, and therefore, Islamic finance needs to adapt and benefit from these advanced digital technologies. The adoption of fintechs by the Islamic finance industry should be guided by the established principles of Islamic law in order for the industry to preserve its identity. The use of fintechs associated with the ‘fourth industrial revolution’ can be broadly classified into three main categories: automation, disintermediation and decentralization. The use of automation and disintermediation by the Islamic finance industry does not pose any challenge to the established principles of Islamic law; it even has the potential of promoting the compliance with these principles. The technologies associated with decentralization are the most challenging to use in the context of Islamic finance. Some of the identifying characteristics of cryptocurrencies and cryptoassets are inherently incompatible with some of the established principles of Islamic law. Therefore, the Islamic finance industry should err on the side of caution when it comes to utilizing these advanced digital technologies. The Islamic finance industry dates back to the early 1970s, which makes it relatively young compared to its conventional counterpart. However, the rate of growth in terms of its assets and markets’ reach demonstrates a noticeable success story. On the one hand, it is estimated that the industry is currently worth $2.2 trillion1 with an expected continuous growth rate in 2022–2023 of about 10 per cent.2 Although in 2020 the global financial market suffered from the double shock of the Covid pandemic and the drop in oil prices, the industry grew rapidly that year albeit at a slower rate compared to 2019.3 This expansion continued throughout the year of 2021 with the rate of growth in total assets reaching 10.5 per cent.4 On the other hand, Islamic finance products are now available in all major international financial centres outside the Islamic world. The industry offers a wide range of financial products that utilizes equity- and debt-based techniques to offer financial alternatives that comply with the teachings of Islam. A prime example of its international appeal is the UK Government sovereign Sukuk al-ijara, worth £200 million, issued in 2014 and matured on 22nd July 2019. Given the success of the first issue, the UK government issued a second sovereignty Sukuk al-ijara on 25 March 2021 worth £500 million with 5 years maturity.5 Since the inception of the industry there has been a dominant trend in its business model, namely the emulation of conventional finance instruments with certain twists. It can be suggested that at the beginning the industry needed to relate to the existing market practices, which are primarily driven by debt instruments. Therefore, the Islamic finance industry relied heavily on more debt-based products rather than equity while attempting to ensure a margin of risk sharing—concerning the potential profits and possible losses as well—to maintain its compliance with the principles of Islamic law. As time moved on and Islamic finance is no longer an alien concept, the industry has not moved on from this format towards more equity-based instruments.6 This would mean more genuine profit–loss sharing among participants, especially those who are providing the capital, in business ventures. Accordingly, the industry has come under heavy criticism for lacking compliance with the spirit of the Islamic doctrines on finance. This was expressed in some of the academic writing7 and by some members of the industry. In 2007, the chairman of the board of Islamic (Sharia) scholars at the Accounting and Auditing Organization for Islamic Financial Institutions, Sheikh Muhammad Taqi Usmani, criticized some of the sukuk structures in the market, sukuk murahaba and mudaraba, for non-sharia compliance. Another example of the problematic use of debt-based instruments in Islamic finance is the saga of Dana gas sukuk, issued in 2007 using murabaha structure (ie debt based) and were declared by the issuer in 2017 as non-Sharia compliant.8 The digital technological advancements, connected to the so-called ‘fourth industrial revolution’,9 brought some new changes to how the financial industry operates its business and interacts with its client base. The term financial technology ‘fintech’ is used to summarize a range of computer-based digital innovations that have been used to utilize financial transactions and services through untraditional means and formats. Fintech has, to an extent, influenced the operations of the global financial industry most apparently in the wake of the 2008 global financial crisis. The Islamic finance industry has already explored aspects of fintech that would broaden its offering and improve its accessibility. However, it is fair to suggest that although the Islamic finance industry has come a long way on the path of standardization,10 the industry has not yet fully addressed some of the major uncertainties concerning the Sharia compliance of a range of its products. With this in mind, there seems to be a worrying trend in the industry that advocates venturing into new fintech territories that are riddled with controversies and uncertainties, namely crypto finance. This article demonstrates that the characteristics of some of the crypto finance products, namely cryptocurrency and cryptoassets, are inherently incompatible with the fundamentals of Islamic law and its finance theory. Therefore, a more cautious approach to engaging with these technologies is needed; otherwise, the industry may further risk undermining its Islamic characteristic that is central to its existence. This article is structured as follows: Section 2 examines the main categories of the advanced digital technologies (automation, disintermediation and decentralization) associated with the so-called ‘fourth industrial revolution’ and maps out their application in the context of Islamic finance; Section 3 provides an overview of Islamic law and demonstrates its inherent incompatibility with two of the decentralization products namely cryptocurrencies and cryptoassets; Section 4 reflects on the future of fintechs in the context of Islamic finance and argues that solutions could be found to address some of the issues identified as Islamically problematic regarding the use of cryptoassets as token to raise equity finance (Initial Coin Offering). For many decades, technology and the traditional financial sector have had a fruitful partnership, which allowed the latter to broaden its reach, improve its services and obtain significant financial rewards along the line. From ATMs and card payment systems to online banking, these technological advances have served well the financial sector and its customers. However, since 2008 there has been a new breed of fintechs that are not all designed to work in partnership with the traditional financial sector, rather some are more designed to challenge and disrupt the sector’s existing business models.11 The use of this new breed of digital technologies can be broadly classified into three main categories: automation, disintermediation and decentralization.12 The technological advancement in automation, namely artificial intelligence (AI) and big data analytics, is owed to the advanced computer processing powers that can analyse large sets of data using complicated algorithms to generate insights and predictions, which inform and drive business decisions.13 The application in the financial context means that established financial institutions, alongside their new start-ups competitors, are using these technologies for making investment and lending decisions at the wholesale and retail levels.14 Further, these technologies are being further developed and used to ensure institutional compliance with regulatory requirements for money laundering, fraud and illicit transactions detection.15 As for disintermediation, the premise is the use of new digital technologies to reduce the reliance on intermediaries for financing and other services. Peer to peer (P2P) finance is a prime example; the creation of a web-based platform that connects businesses with investors directly has challenged the conventional business model that required a financial institution to make the link. The use of this finance model is not exclusive to businesses but it is also utilized for credit consumers. Another example is open banking, which means the sharing of consumers’ financial data, after they consent, with trusted third-party providers (TPPs) in order to tailor services and applications to serve their best financial interests and accommodate for their financial circumstance.16 This, for example, includes applications and websites that provide automatic saving options and budgeting tips.17 Open banking also facilitates online payments in a quicker, easier and more secured way,18 as once the payment is initiated the online retailer website will connect the customer to their banking app to authenticate the payment without the use of a debit card.19 Similar to other segments of the global financial sector, the Islamic finance industry has been influenced by these digital technological advances, and Islamic fintech is a growing part of this industry with great potential. The global Muslim population is the fastest growing with a median age of 24 years old, which means that they are either ‘digital natives’20 at Islamic therefore, would appeal to a of the of and In this Islamic fintech has some advances in the automation investment are utilizing Sharia for Sharia For the first investment platform is a success which offers its services not in the and UK but also to in more than However, the of Islamic fintech growth in the disintermediation more has been a noticeable in the of Islamic fintech and finance from the year The business model of these on a central of Islamic finance that is directly to and for genuine and in this context to the of the trusted needed in any financial and it with an that The and most application of this in the financial context means the creation of a new in which is not issued by a trusted central and financial are not relied on for the and of any This is not new rather its back to the early a of declared an to systems for to online without worrying about how would their This was to be through the use of complicated The first was in the early was an payment that used its digital to online not have success and the to an in it was by other digital that also to the of in The of utilized and digital and to a digital structure that as a digital to transactions and as an issuer of the digital The structure that is the of is now as the which is now utilized for other fintech applications cryptocurrencies and as in this to the cryptocurrency on their and in order to part in the and of the payments and for this It is to that all these are and on the computer and by the computer that is the Therefore, the of the on this of is the in the as the first to a complicated of work will be to the and of the In this the Islamic finance industry has also into the decentralization of On the one hand, there is the use of cryptoassets and is utilized as a for the of Sukuk use the and its to the automation of many as the of the of the Sukuk and the of payments to the of Sukuk which is to reduce intermediaries and Although in the use of technology in the context of Sukuk may not there some problematic issues connected to the use of cryptocurrency as for On the other hand, and more for the of this there is a in the Islamic finance industry that is the use of the other products of namely cryptocurrency and This article demonstrates in the the inherent the of Islamic finance and those of cryptocurrencies and therefore, argues that the of these the industry should err on the side of is a which the into the of all its in other the and of Islamic law is the term broadly used to the and that are on the Sharia the and the and the and of these On the one hand, the is the of to and includes that in being in some and in The is the and and it is classified by the as The an in the in the application of some and in some new On the other hand, there is the to Islamic law that is as and by the scholars and application of the and are central to Islamic law the that has in the and Although this is to the of it is open to this is for the application of Islamic it may for on the is a range of that would to in order to their in a that is in the among these are and it the of the of Muslim scholars on a that has not been found in the and an established that a to use to the of an established in the and its application to the new it the the from an established in a in of that has been on the of benefit A example of how this of in the and financial context is the concerning the of that includes conventional and the of which means and the it does not this Therefore, the this as it two of and their application in the financial and the of to the in conventional finance is the of Muslim of the in the and the Further, the its with risk and it does not to in the and financial It is the that to transactions as it The of this to some and financial transactions and the of would not a is the of Muslim scholars through their to the The the term to assets while the associated with Further, there are a of categories the of for which Islamic law identified a of as to as in This is that the of any financial would on a and would the and of the In this the will on a of namely and financial their characteristics and how cryptocurrencies and cryptoassets to these in the is while the any at a In the money to and and the the money used in a at a Similar to the of money in conventional the of in Islamic has developed the years to the in the of the of which now and The of that money have significant from Muslim scholars they have their with the of money under Islamic law. 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Lelang melalui Non-fungible Token (NFT) merupakan fenomena yang cukup baru yang terjadi di era digital, sehingga perlu dicarikan standar hukumnya. Dalam lelang melalui Non-fungible Token pembeli hanya melakukan penawaran melalui website dan dikenakan biaya yang cukup tinggi untuk setiap penawarannya. Sedangkan pembayarannya menggunakan uang kripto (cryptocurrency). Kajian ini bersifat kualitatif dengan pendekatan normatif dalam menjawab permasalahan bagaimana hakikat lelang aset digital melalui NFT dan bagaimana perspektif Hukum Ekonomi Syariah. Kajian ini berkesimpulan bahwa jual beli benda digital sebenarnya tidaklah dilarang, termasuk jual beli NFT dengan teknologi blockchain yang kecanggihannya dapat menyimpan data tanpa bisa dihapus, sehingga dapat meminimalisir terjadinya pemalsuan. Namun karena undang-undang di Indonesia telah menetapkan rupiah sebagai alat pembayaran yang sah di negara Indonesia, maka jual beli aset digital dalam bentuk NFT menjadi tidak sah karena alat pembeliannya menggunakan cryptocurrency. Selain itu, lelang aset digital melalui NFT untuk saat ini juga dilarang bagi umat Islam karena Majelis Ulama Indonesia menetapkan hukum haram terkait penggunaan cryptocurrency disebabkan belum adanya underlying atau otoritas yang mengaturnya, sehingga mengandung unsur gharar, dharar dan qimar, yang dikhawatirkan tidak membawa maslahah bagi pengguna cryptocurrency sehingga diharamkan.
This research aims to examine the views of contemporary Islamic law regarding bitcoin digital assets as objects of inheritance. In this research, a normative juridical method is used which involves library legal research by examining library materials or secondary data with data collection techniques using a conceptual approach. The results show that bitcoin meets the criteria to be used as inherited property because the nature of bitcoin assets is in accordance with the nature of property, but contemporary Islamic scholars differ in opinion regarding the law of using bitcoin, the Indonesian Ulema Council itself forbids bitcoin as a currency and commodity without underlying, and legalizes bitcoin as a commodity with underlying, so that the law of inheritance also depends on the opinion or fatwa that is trusted, because fatwa is not binding.
Dengan potensi zakat yang begitu besar untuk kesejahteraan masyarakat, pengelolaan zakat saat ini di Indonesia masih belum optimal. Untuk meningkatkan efektivitas lembaga zakat, tata kelola yang baik merupakan faktor penting. Sebagai organisasi publik, kinerja lembaga zakat khususnya dalam administrasi dan pelayanan merupakan indikator meningkatnya kepercayaan masyarakat. Penelitian ini bertujuan untuk mengidentifikasi peluang penerapan blockchain pada pengelolaan zakat. Penelitian ini menggunakan pendekatan kualitatif deskriptif dengan metode studi pustaka pada topik zakat dan blockchain di Indonesia. Hasil penelitian ini menekankan adanya tantangan dan mengusulkan starategi dalam pengelolaan zakat dengan blockchain. Dalam hal ini, peran amil zakat dan muzakki menjadi kunci dalam pelaksanaan zakat menggunakan teknologi blockchain dalam pengelolaan zakat yang berkualitas, efisien, akuntabel, dan profesional dalam menyalurkan zakat ke asnaf. Penerapan teknologi Blockchain dalam pengelolaan zakat dapat melacak status dana zakat dan membuat proses distribusi dan transaksi dana menjadi transparan. Penelitian ini bermanfaat untuk meningkatkan tatakelola zakat di Indonesia dengan memberikan strategi bagi semua stakeholders zakat seperti pemerintah, kementrian Agama, Baznas, organisasi masyarakat, dan lembaga pengelola zakat.
Nur Syaedah Kamis, Norazlina Abd Wahab, Mohammad Azam Hussain
The positive acceptance of cryptocurrency by the public indicates their interest and enthusiasm for cryptocurrency. Nevertheless, theregulatory overlay related to cryptocurrency is still at its infancy level, posing challenges to its estate administration upon the death ofthe owner of a cryptocurrency, which will lead to its disappearance and loss as it becomes impossible to be inherited. Hence, in light ofthis undesirable possibility, this paper aims to analyze the legal and Shariah issues on the estate administration of cryptocurrency from the perspectives of Malaysian laws and Shariah. This paper examined doctrinal research by examining relevant legal provisions, Shariah rulings, fatwa, cases, and non-legal literature on estate administration. This paper concludes that there is a lacuna in the estate administration of cryptocurrency as its regulatory framework is still new and evolving. Therefore, the legal and Shariah issues highlighted in this paper may provide some important policy implications for regulators and policymakers to fulfil the lacuna in the estate administration of cryptocurrency in Malaysia.
Smart contract terkenal sebagai protokol perangkat lunak yang memungkinkan pelaksanaan otomatis dari kontrak tanpa melibatkan pihak ketiga, dan memungkinkan pemangku kepentingan, seperti bank, lembaga keuangan mikro, atau penyedia layanan keuangan syariah lainnya untuk secara otomatis melaksanakan perjanjian yang telah ditetapkan berdasarkan prinsip-prinsip syariah tanpa intervensi manusia. Namun, munculnya pro kontra dalam penerapan smart contract yaitu kebutuhan akan audit dan verifikasi yang cermat untuk memastikan bahwa smart contract telah dirancang sesuai dengan prinsip-prinsip syariah, tujuan penelitian ini adalah untuk mengidentifikasi tantangan dan peluang dalam penerapan Smart contract agar adanya perlindungan hukum yang jelas sesuai dengan prinsip syariah. Dalam penelitian ini penulis menggunakan jenis penelitian yuridis normatif atau metode penelitian kepustakaan. Hasil penelitian ditemukan bahwa perlunya kesepakatan dan standar yang lebih jelas mengenai kontrak syariah, serta tantangan hukum dan regulasi yang mungkin muncul dalam mengadopsi teknologi ini. Melalui analisis peluang dan tantangan yang terkait dengan penerapan Smart contract syariah dalam blockchain, penelitian ini memberikan pemahaman yang lebih baik tentang potensi teknologi ini dalam mendukung ekosistem keuangan syariah. Dengan memahami tantangan dan risiko yang terkait, pelaku industri, regulator, dan akademisi dapat bekerja sama untuk mengembangkan solusi yang sesuai dengan prinsip-prinsip syariah dan memperkuat kepercayaan masyarakat terhadap sistem keuangan syariah. Regulasi yang jelas akan mengatur persyaratan dan standar yang harus dipenuhi oleh Smart contract Syariah, sehingga transaksi yang dilakukan dalam blockchain dapat dikonfirmasi secara hukum sesuai dengan prinsip-prinsip syariah.