Its novelty lies in: (a) formalizing seven explicit propositions (P1–P7) with explicit why-how-formal statement structure for each construct-to-construct relationship; (b) theorizing a differentiated serial mediation structure—full mediation in the upstream technical-structural segment (P1–P3) and partial mediation in the downstream relational-governance segment (P4–P7); (c) reversing the P6 direction to Sharia Compliance → Stakeholder Trust on Signaling Theory grounds; (d) defining Institutional Performance as a four-dimensional construct (financial, Sharia legitimacy, stakeholder value, and governance quality); and (e) specifying boundary conditions delimiting the framework’s scope to permissioned blockchain environments and high-religiosity market contexts.
The digital transformation of Islamic finance encourages the evolution of musharakah contracts into a technology-based crowdfunding ecosystem. However, this change also presents a more complex moral hazard risk due to the limitations of direct supervision. This research aims to synthesize the scientific literature for the period 2015-2025 in order to map the digital evolution of musharakah contracts and formulate a moral hazard risk mitigation framework that is adaptive to the characteristics of sharia crowdfunding platforms. The study uses a Systematic Literature Review (SLR) with a descriptive-analytical approach across 15 reputable scientific articles. The findings show that the moral hazard in sharia crowdfunding stems from information asymmetry, weaknesses in digital financial reporting, and limited platform oversight capacity, which collectively weakens the integrity of profit-sharing-based contracts. Effective mitigation requires the integration of four dimensions, namely algorithmic technology such as blockchain and smart contracts, strengthening digital sharia supervisory institutions, updating specific OJK regulations, and increasing the capacity of Islamic financial literacy, which together form the concept of Algorithmic Sharia Governance as a novelty in this study.
This paper presents, to the best of our knowledge, the first formal mechanism design treatment of Quran 2:282 as a low-cost verification mechanism. It proves that the Quranic debt documentation mechanism drives the creditor's expected verification cost to zero in the costly state verification framework. It achieves this by creating ex ante evidence through writing and witnessing, and by introducing a dual deterrence system: a fixed internal moral cost and a detection-contingent legal penalty. The paper also offers two interpretative contributions. First, it shows that the Quranic witness rule is an early redundancy mechanism for error correction, anticipating the logic later formalized by Hamming (1950). Second, it proposes an economic reading of the terms safih, da'if, and the inability to dictate, arguing that the guardian who dictates with justice may be a qualified third-party verifier, not merely a relative.
This chapter applies classical Islamic jurisprudential principles to analyse mainstream fatwas prohibiting Bitcoin, evaluating whether their core arguments sufficiently align with the established frameworks of Islamic law. Despite frequent claims that Bitcoin's intangible nature, volatility, and lack of official state issuance render it impermissible (Haram), the research finds these arguments often rest on incomplete analogies and misinterpretations of foundational Fiqh concepts. Drawing on texts regarding Gharar (excessive uncertainty), Qimar (gambling), property (māl), and state authority in monetary issuance, the study highlights that historically, Sharia recognized various intangible or privately issued assets, and not all forms of risk equate to impermissible speculation. Additionally, the principle of ‘blocking of means’ (sadd al-dharāʾiʿ) requires a more precise linkage to clearly Haram outcomes. By scrutinizing potential methodological oversights in prohibitory rulings, this chapter underscores that blanket bans may overlook Bitcoin's potential to fulfil key Sharia objectives – such as wealth preservation – when used responsibly. The analysis ultimately advocates more nuanced, evidence-based approaches to Bitcoin's permissibility, rooted in robust Fiqh and accurate technical understanding.
Cahya Kamila Maharani, Relit Nur Edi, Ismail Septayanto Utama
The 4.0 Industrial Revolution has transformed the global economic landscape through the digitalization of financial services, trade, and industrial activities. This transformation has accelerated the growth of the Halal Market, making it one of the fastest-growing economic sectors, driven by the expanding Muslim population, increasing awareness of halal consumption, and rising demand for ethical and sustainable products. In this context, Islamic Fintech has emerged as a strategic innovation that integrates digital financial technologies with the principles of Islamic law and economics. Although studies on Sharia Fintech and the halal industry have grown substantially, research integrating these two domains from the perspectives of Islamic law and Islamic economics remains limited. This study aims to examine the strategic role of Islamic Fintech in strengthening the global Halal Market through an interconnective analytical framework. Employing a qualitative library research approach, the study critically analyzes scholarly literature, regulatory documents, international reports, and previous empirical studies. The findings indicate that Sharia Fintech enhances financial inclusion, transparency, halal traceability, value chain efficiency, and digital governance through the adoption of blockchain, artificial intelligence, smart contracts, and digital payment systems. These innovations contribute to the realization of Maqashid al-Shariah, particularly the protection of wealth (ḥifẓ al-māl) and the promotion of public welfare (maṣlaḥah). The novelty of this study lies in the development of a comprehensive conceptual framework that integrates Islamic law, Islamic economics, digital financial innovation, and Halal Market governance into a unified analytical model.
Abdul Adlim, Babun Suharto, Wildan Khisbullah Suhma, Kholida Ulfi Mubaroka
The rapid development of crypto assets has challenged the classical concept of mal (property) in Islamic jurisprudence because digital assets do not possess tangible physical characteristics traditionally associated with lawful ownership. This study aims to reconstruct the paradigm of mal within contemporary fiqh by examining the legal status of crypto assets through the framework of maqasid al-shari'ah, particularly hifz al-mal, while evaluating the role of smart contracts in reducing contractual uncertainty (gharar). This study employed a qualitative normative legal approach based on literature analysis of classical fiqh, usul al-fiqh, contemporary Islamic legal scholarship, institutional fatwas, and financial regulations. The findings demonstrate that the concept of mal has evolved from a material-based understanding toward a value-oriented paradigm that emphasizes recognized benefit, scarcity, and lawful ownership. Under these criteria, crypto assets may be recognized as mal when supported by legitimate ownership, transparent governance, and productive economic purposes. Smart contracts contribute to minimizing contractual and operational gharar through automated execution and transaction transparency, although they cannot eliminate risks arising from market volatility. This study proposes a reconstructed paradigm of mal that provides a more contextual analytical framework for assessing the legality of digital assets within contemporary Islamic law.
This study maps the development, collaboration patterns, citation structure, and thematic evolution of research on blockchain technology in the waqf sector. A bibliometric analysis of 417 Scopus-indexed publications published from 2006 to 12 July 2024 was performed using Bibliometrix in RStudio and VOSviewer. The analysis covered publication trends, influential sources and contributors, country productivity, citation impact, collaboration networks, and keyword co-occurrence. The results show increasing scholarly attention to the intersection of blockchain, Islamic finance, fintech, and waqf management. Malaysia and Indonesia emerged as the most productive and most cited countries, while an international co-authorship rate of 29.74% indicated moderate cross-border collaboration. Keyword analysis revealed that the field is anchored in Islamic finance, fintech, blockchain, and waqf, with growing attention to cash waqf, crowdfunding, financial inclusion, digital transformation, smart contracts, cybersecurity, and technology adoption. However, these patterns demonstrate scholarly attention and thematic associations rather than empirical proof of blockchain’s operational benefits in waqf institutions. This study identifies priority gaps in empirical implementation, Shariah governance, stakeholder adoption, technical feasibility, and socioeconomic impact evaluation of blockchain-enabled waqf systems.
This study aims to provide a comprehensive science mapping and bibliometric analysis of the FinTech landscape within Islamic banking and finance. It deciphers the intellectual structure and thematic evolution of the field during the transformative window from 2017 to early 2026. Methodology: Utilizing the Scopus database, a dataset of 725 scholarly documents was extracted and analyzed. The research employs a multi-tool approach, integrating R-Bibliometrix (Biblioshiny) for longitudinal performance analysis and VOSviewer for visualizing keyword co-occurrence and institutional collaboration networks. The PRISMA 2020 protocol was followed to ensure methodological transparency. Findings. The results reveal an exponential surge in scientific production, characterized by an impressive annual growth rate of 28.42%. Malaysia and Indonesia emerge as the primary global knowledge hubs, with the International Islamic University Malaysia leading institutional contributions. The analysis identifies three core intellectual clusters: (1) Blockchain and Cryptocurrencies, (2) AI and Regulatory Compliance, and (3) Financial Inclusion and Institutional Stability. Thematic evolution indicates a strategic shift from basic FinTech adoption toward advanced applications in Artificial Intelligence, Ethical Technology, and the Sustainable Development Goals (SDGs). Originality,
The application of istiḥsān in the digital economy continues to face challenges related to subjectivity and the lack of methodological transparency. This study aims to formulate a seven-stage istiḥsān operational model as a structured framework for enhancing accountability in Sharia economic legal reasoning. Employing a critical juridical-normative approach grounded in legal coherence theory, the proposed model provides objective criteria to guide mujtahids in determining exceptional legal rulings. The model was validated through two strategic case studies: (1) a retrospective analysis of Sukuk instruments and (2) a prospective analysis of Non-Fungible Tokens (NFTs). The findings demonstrate that the model successfully reconstructs the implicit legal reasoning underlying established Sukuk fatwas, thereby confirming its retrospective consistency. Prospectively, when applied to NFTs, the model functions as a rigorous evaluative filter that permits innovation only when the anticipated maṣlaḥah outweighs the potential mafsadah. In cases where secondary harms—such as the environmental costs associated with energy consumption and speculative market bubbles—predominate, the model justifies restricting such innovations. This study makes a significant academic contribution by transforming contemporary istiḥsān from an abstract jurisprudential concept into a replicable, transparent, and auditable analytical framework. It demonstrates that structured ijtihād provides a robust governance mechanism for fostering ethical, accountable, and sustainable Sharia-compliant innovation in global capital markets.
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.
Blockchain-based innovation has become increasingly relevant in Islamic social finance due to persistent challenges in waqf governance, particularly related to transparency deficits, limited accountability, and declining global trust in institutional reporting systems. This study aims to analyze the integration of blockchain technology in waqf management to enhance transparency and strengthen global trust in Islamic endowment institutions. A qualitative library research design was employed using systematic literature review and conceptual analysis of scholarly articles, policy reports, and fintech governance studies related to blockchain applications and waqf administration. Findings indicate that blockchain technology significantly improves traceability, data immutability, and real-time auditing of waqf assets through decentralized ledger systems and smart contracts. The results further reveal that enhanced transparency directly contributes to increased donor confidence and broader international participation in waqf-based initiatives. Institutional readiness, regulatory frameworks, and digital infrastructure are identified as key determinants of successful implementation. The study concludes that blockchain integration represents a transformative governance model capable of modernizing waqf management systems while reinforcing global trust and accountability in Islamic philanthropic finance ecosystems.
Muhammad Izzuddin Al Ayzami, Achmad Fathoni, Moh. Sirojuddin
Penelitian ini mengkaji apakah aset digital memenuhi unsur māl mutaqawwam dan dapat menjadi mahar yang sah menurut fikih Islam. Proliferasi aset digital meliputi cryptocurrency, stablecoin, non-fungible token (NFT), utility token, dan security token telah menghadirkan pertanyaan baru yang belum terpetakan dalam hukum keluarga Islam (Ahwal Syakhshiyyah), khususnya tentang kelayakan aset digital sebagai mahar perkawinan. Kajian-kajian sebelumnya dominan membahas kehalalan cryptocurrency secara umum tanpa melakukan evaluasi sistematis terhadap berbagai kategori aset digital berdasarkan syarat-syarat mahar yang ditentukan fikih klasik. Penelitian ini menggunakan metode library research dengan pendekatan normatif-konseptual, merujuk pada sumber-sumber fikih primer empat mazhab Sunni (Hanafi, Maliki, Syafi'i, dan Hanbali) serta lembaga fatwa kontemporer yang otoritatif, meliputi DSN-MUI, AAOIFI, dan Majma' al-Fiqh al-Islami. Kajian ini mengintegrasikan enam kerangka teoritis māl, māl mutaqawwam, milkiyyah, qabd, gharar, dan syarat-syarat mahar dan menerapkannya secara analitis terhadap setiap kategori aset digital. Temuan penelitian ini menunjukkan bahwa tidak semua aset digital memiliki status hukum yang identik. Stablecoin dan utility token yang dilindungi hukum umumnya memenuhi syarat māl mutaqawwam dan dapat berfungsi sebagai mahar yang sah apabila mekanisme qabd yang jelas ditetapkan. Cryptocurrency yang sangat volatil menimbulkan kekhawatiran signifikan terkait gharar dan defisiensi taqawwum, sehingga statusnya bergantung pada pengakuan regulasi dan stabilitas pasar. NFT dapat menjadi mahar yang sah sepanjang aset yang mendasarinya memberikan hak ekonomi yang diakui dan dapat dialihkan. Security token memiliki klaim terkuat sebagai mahar mengingat sifatnya yang didukung aset dan pengawasan regulasi. Penelitian ini memberikan kontribusi berupa matriks klasifikasi hukum komprehensif untuk aset digital sebagai mahar dan mengusulkan kerangka konseptual untuk integrasi aset digital ke dalam hukum keluarga Islam kontemporer.
The financial landscape in developed countries, including the United States, China, Japan, and Europe, experienced a significant transformation due to the rapid emergence of cryptocurrencies, decentralized finance, Central Bank Digital Currencies (CBDCs), and Fintech innovations. This chapter delved into the profound implications of these technological advancements on financial systems, with a particular focus on stability, security, and regulation. Notably, these transformative changes posed distinctive challenges in Muslim-majority countries, largely due to the absence of Shariah-compliant financial services. The study took a qualitative approach, utilizing structured questionnaires for data collection and investigating the potential of CBDCs in payment settlements through thematic analysis. Respondents stressed the need for clear legal and regulatory frameworks to strike a balance between innovation and consumer protection, cautioning against excessive regulation that could stifle innovation. For financial inclusion and economic growth, emerging economies with Muslim majorities harnessed financial innovations by adapting regulatory frameworks, enhancing digital payment infrastructure, promoting education, and fostering collaborations between traditional financial institutions and Fintech start-ups, aligning these solutions with Islamic finance principles to address unique local challenges. Blockchain technology was identified as having significant potential to enhance supply chain and trade finance in Muslim-majority nations, offering advantages such as transparency, traceability, fraud reduction, and automation for cross-border trade. However, challenges like regulatory uncertainty, educational requirements, infrastructure needs, and security concerns had to be addressed for this potential to be fully realized. In conclusion, the research underscored the importance of learning from the experiences of developed countries and advocated for inclusive regulation, public-private collaboration, education, data security, and international cooperation to achieve financial inclusion and sustainable economic growth in emerging economies. Embracing and integrating new financial technologies could help these nations overcome hurdles and effectively foster development.
This research provides an in-depth evaluation of current academic studies and advancements in the fields of cryptocurrencies, financial technology, blockchain-based decentralized finance (DeFi), stablecoins, state-owned digital currencies, and Central Bank Digital Currencies (CBDCs). The rapidly evolving Fintech environment, as well as the growing significance of DeFi, Bitcoin, and CBDCs, are critical in the current financial landscape. The study delves into several areas of the Fintech development, such as the overall Fintech experience, digital banking tools, payment methods, and Fintech-based lending practices. It also provides insight into the current status of CBDC programs and pilot projects in different countries. Furthermore, the study looks into how the emergence of cryptocurrencies, Fintech, and DeFi on the blockchain has resulted in revolutionary changes inside industrialized nations such as the United States, China, Japan, and several European countries. It also discusses the wide-ranging implications of these changes for financial stability, security, and regulatory measures. This comprehensive analysis provides valuable insights into the current financial landscape and its potential future directions.
One of the domains that is seeing a rapid transformation in its dimensions as a result of the proliferation of new technologies across the globe is finance. As a component of the conventional financial system, Islamic finance is required to keep pace with the development of technology to make the most of the opportunities presented by developing technologies in the process of bringing Shariah-compliant products that are suitable for Muslims in particular and for mankind in general. Musharakah, Mudarabah, and Murabahah are the three models that serve as the basis for the essential foundations of Islamic commercial law. Specifically, the Mudarabah, Musharakah, and Murabaha contracts are the ones that are investigated in this chapter as they pertain to the implementation of blockchain technology in Islamic commercial transactions. An introduction to blockchain and its various varieties, characteristics, and functions is presented at the beginning of the chapter. Following this, the chapter sheds light on the primary Islamic commercial contracts (mudarabah, musharakah, and murabahah) and their requirements, as well as their functioning, respectively. The chapter then moves on to its primary thesis, which is a comprehensive discussion of how blockchain technology can be used in the three Islamic commercial contracts that are being examined. The problems that Islamic finance specialists will need to overcome to properly incorporate blockchain technology in Islamic commercial contracts are discussed in the final section of the chapter.
Penelitian ini bertujuan untuk mengevaluasi penggunaan cryptocurrency sebagai metode pembayaran zakat yang halal di Malaysia, dengan mengeksplorasi kesesuaiannya dengan prinsip-prinsip Islam sambil mempertimbangkan inovasi teknologi dan kepatuhan syariah untuk pembayaran zakat yang efisien dan transparan. Pendekatan kualitatif digunakan, melibatkan tinjauan pustaka dan analisis regulasi terkait fatwa Malaysia, peraturan keuangan, serta sumber akademis tentang keuangan Islam dan cryptocurrency. Cryptocurrency dapat berfungsi sebagai sarana halal untuk zakat jika memenuhi kriteria syariah seperti transparansi, kepemilikan aset yang sah, serta menghindari gharar dan riba. Regulasi dan fatwa di Malaysia menunjukkan penerimaan yang berkembang di bawah pengawasan ketat; teknologi blockchain meningkatkan akuntabilitas distribusi zakat, meskipun volatilitas nilai dan pemahaman publik tetap menjadi tantangan utama. Integrasi cryptocurrency dapat memodernisasi sistem zakat, meningkatkan kepercayaan dan transparansi sekaligus memastikan kepatuhan syariah. Kolaborasi antara regulator, ulama Islam, dan pengembang fintech sangat penting untuk membangun ekosistem zakat digital yang inklusif dan dapat diakses oleh komunitas Muslim Malaysia. Studi ini menawarkan perspektif inovatif dengan menggabungkan analisis regulasi, teknologi, dan fiqh mengenai cryptocurrency halal untuk zakat di Malaysia, mengisi kekosongan penelitian tentang solusi keuangan Islam digital di pasar negara berkembang.
Deniz Erer, Tuna Can Güleç, Özge Korkmaz, Elif Erer
Rapid developments in blockchain, decentralized finance, and tokenization have raised the question of whether Sukuk can complement technology-based financial assets. This study compares the time-varying efficiency and multifractal dynamics of Sukuk indices, DeFi tokens, lending and borrowing tokens, and a FinTech index from May 25, 2020, to November 29, 2023. Using TGARCH, nonlinearity and long-memory tests, MF-DFA, and MF-DCCA, the study examines shock persistence, asymmetric volatility, market efficiency, and cross-market dependence. The findings show that negative shocks increase volatility more strongly than positive shocks and that all markets display nonlinear and multifractal behavior. Sukuk indices, particularly RMENA and RDJSUKUK, show lower market deficiency values than most technology-based assets. However, persistent cross-correlations indicate that Sukuk is not a direct substitute for these assets. Rather, Sukuk may serve as a relatively stable and efficient complementary asset in technology-exposed portfolios.Key Words: Sukuk, DeFi assets, Tokenization, Financial Economics, MF-DFA, MF-DCCAJEL Classification: F65, E44, G15, C58
Cryptocurrency has become a significant innovation in the digital financial system, sparking various perspectives on its compatibility with sharia. This study aims to analyze the legality of cryptocurrency from a sharia perspective, including its transaction mechanisms and investment implications. The primary focus is on examining the elements of gharar (uncertainty) and maysir (gambling), which could potentially render it impermissible under sharia. The research employs a normative analysis approach to explore contemporary scholars' views and their relevance to maqasid sharia, which emphasize the protection of wealth and societal welfare. The findings indicate that, despite cryptocurrency's benefits, such as transaction efficiency and accessibility, its high speculative risks and value uncertainty pose major obstacles to its acceptance under sharia. Therefore, clear and comprehensive regulations are needed to accommodate cryptocurrency use in sharia-compliant financial institutions without violating Islamic principles. This study provides a significant contribution to clarifying the position of cryptocurrency within the Islamic financial system and encourages the development of sharia-based regulations for digital transactions.
Azkia (IAI Darussalam Martapura), Annisa Nur Aulia Purnama (IAI Darussalam Martapura), Muhammad Sauqi (IAI Darussalam Martapura)
Penelitian ini bertujuan untuk mengkaji konsep kepemilikan aset digital melalui perspektif m?l (harta) dalam fikih kontemporer. Perkembangan teknologi digital telah melahirkan berbagai bentuk aset baru, seperti cryptocurrency, token digital, non-fungible token (NFT), serta aset berbasis blockchain lainnya yang memiliki nilai ekonomi dan diperdagangkan dalam sistem ekonomi modern. Fenomena ini menimbulkan pertanyaan mengenai status hukum dan kedudukan aset digital dalam perspektif hukum Islam. Penelitian ini menggunakan pendekatan kualitatif dengan metode studi kepustakaan (library research), melalui penelaahan terhadap literatur fikih klasik dan kontemporer, buku ekonomi Islam, serta artikel ilmiah yang relevan dengan perkembangan aset digital. Analisis dilakukan secara deskriptif-analitis untuk mengkaji kesesuaian karakteristik aset digital dengan konsep m?l dalam fikih Islam. Hasil penelitian menunjukkan bahwa aset digital pada dasarnya dapat dikategorikan sebagai m?l, karena memenuhi kriteria utama harta dalam hukum Islam, yaitu memiliki nilai ekonomi, dapat dimiliki secara sah, serta memberikan manfaat bagi pemiliknya. Namun demikian, status hukum beberapa jenis aset digital masih menjadi perdebatan di kalangan ulama, terutama yang memiliki tingkat volatilitas tinggi dan mengandung unsur spekulatif. Dengan demikian, fikih kontemporer memiliki peran penting dalam memberikan landasan ijtihad terhadap fenomena ekonomi digital agar tetap selaras dengan prinsip-prinsip syariah. Penelitian ini diharapkan dapat memberikan kontribusi akademik dalam pengembangan kajian fikih muamalah, khususnya terkait kepemilikan aset digital dalam konteks ekonomi modern.
Ahmad Ahmad, Muhammad Said, Abdillah Abdillah, Abdulloh Munir
The rapid expansion of Decentralized Finance (DeFi), powered by blockchain technology, has transformed global financial systems by offering peer-to-peer, intermediary-free services. However, its compatibility with Islamic economic law (hukum ekonomi syariah) remains uncertain due to potential violations of Sharia principles such as the prohibition of riba (usury), gharar (excessive uncertainty), and maysir (speculation). This study addresses this gap by employing a qualitative maqāṣid al-sharī‘ah-based analysis to assess the alignment of DeFi mechanisms decentralized exchanges, lending protocols, and smart contracts with Islamic ethical and legal values. Data were collected through literature review and document analysis from classical Islamic sources, fatwas, and current DeFi documentation. The findings show that while many DeFi practices contain non-compliant elements, their underlying technology particularly smart contracts and decentralized governance holds significant potential for adaptation. When structured using Sharia-compliant contracts such as murābaḥah, mushārakah, or wakālah, and guided by maqāṣid objectives like ḥifẓ al-māl (preservation of wealth) and ḥifẓ al-dīn (preservation of faith), DeFi can support financial inclusion, transparency, and justice in accordance with Islamic law. This study proposes a normative framework for building Sharia-compliant DeFi platforms, integrating technical innovations with ethical governance, thereby offering a transformative model for Islamic finance in the digital era.
Abstract: This paper will compare and contrast heights of financial inclusion strategies adopted by Islamic Financial Institutions (IFIs) in Malaysia and Indonesia and specifically discuss Islamic social finance instruments, digital finance and community-based models. By using thematic analysis applied to a variety of policy documents, as well as institutional and implementation strategies, a qualitative comparative approach that is based on secondary data, the study analyzes policy documents and institutional and implementation strategies. The findings indicate that Malaysia follows a policy-based, centralized, and robust regulatory coordination, digital enablement, and integration of Value-Based Intermediation (VBI) and Islamic social finance tools. By contrast, Indonesia uses a decentralized and community-based model, which is powered by Islamic microfinance institutions, including Baitul Maal wat Tamwil (BMTs) with strong grassroots penetration but with issues in terms of standardization of governance and digital readiness. This research study is of value because it presents an integrative analytical model that connects the governance systems, digital integration, and Islamic social finance in determining the financial inclusion outcomes. It sheds light on significant trade-offs between efficiency and inclusiveness, centralization and flexibility, and provides policy relevant insights towards improving inclusive Islamic finance ecosystems.
Muhammad Imamul Muttaqin Arisandi, Bustomi Arisandi, Bahrul Ulum, M. Khodimul Wahib · 5 authors
This study examines the construction of an Islamic digital asset governance framework within the context of blockchain integration for zakat transparency and digital estate planning in Indonesia. The research responds to the growing tension between rapid technological transformation in Islamic finance and the absence of comprehensive sharia-oriented regulatory mechanisms governing crypto assets, decentralized transactions, and digital inheritance systems. Employing a non-empirical juridical-normative method, the study analyzes statutory regulations, DSN-MUI fatwas, comparative international regulatory models, and interdisciplinary scholarly literature concerning Islamic fintech, blockchain governance, and Maqasid Shariah. The findings indicate that existing regulatory approaches remain fragmented because financial supervision, sharia compliance, and inheritance governance operate within disconnected institutional frameworks. Blockchain technology demonstrates significant potential to enhance transparency, accountability, and efficiency in zakat and waqf management through immutable ledgers and automated smart-contract mechanisms, although unresolved cyber risks, speculative volatility, and succession vulnerabilities continue to threaten the principle of hifzh al-mal. The study formulates the Islamic Digital Asset Governance Framework (IDAGF), integrating technical supervision, sharia certification, judicial authorization, and social-finance accountability into a multilayered governance structure capable of harmonizing algorithmic innovation with Islamic legal certainty and sustainable digital financial ethics.
Bunga Desyana Pratami, Yos Johan Utama, Ana Silviana, Imaro Sidqi · 5 authors
Purpose - The rapid development of the digital economy has engendered new forms of wealth that challenge classical concepts of ownership within Islamic law, particularly in the context of inheritance law. Digital assets�such as cryptocurrency, non-fungible tokens (NFTs), and economically valuable digital accounts�present significant legal questions regarding their status as inheritable property, especially given their intangible nature and reliance on technological systems. In practice, many digital assets become inaccessible following the owner's death, often due to the loss of passwords or private keys. This situation creates a disparity between classical legal doctrines and contemporary realities. This study aims to analyse the legal status of digital assets within Islamic inheritance law through a reinterpretation of the concept of wealth (mal) employing an objective of the Islamic law (maqa?id al-shari?ah) approach.Methodology/approach - This research employs a normative juridical methodology, utilising both conceptual and maqa?id-based approaches. It is conducted through a comprehensive literature review of classical Islamic jurisprudence (fiqh) texts and maqa?id theory, supplemented by an analysis of contemporary practices concerning digital asset.Findings - Although some classical scholars�particularly within the ?anafi school�emphasised the material aspect of mal, the majority of scholars recognise lawful economic value and benefit (manfa?ah muba?ah) as the primary criteria for determining property status. From this perspective, digital assets qualify as mal because they possess economic value, can be owned, and are transferable. Furthermore, the framework of maqa?id al-shari?ah, particularly the principles of protection of wealth (?if? al-mal) and protection of lineage (?if? al-nasl), provides a robust normative basis for recognising digital assets as inheritable property. Therefore, the reinterpretation of mal through a maqa?id approach facilitates the integration of digital assets into Islamic inheritance law in both a normative and contextual manner.Conclusion - This study concludes by advocating the establishment of legal and technical mechanisms designed to protect the rights of heirs in the digital age, thereby minimising the disparity between doctrinal principles and practical application.