A Normative Analysis of Islamic Law on Cryptocurrency as an Instrument of Modern Financial Transactions

Authors

Redi Hadiyanto Universitas Islam Bandung Author
Ilmi Ramadhani Universitas Islam Bandung Author

DOI:

https://doi.org/10.66277/aijit.1.1.226

Keywords:

Cryptocurrency, Islamic law, Fiqh muamalah, Gharar and maysir, Sharia compliance

Abstract

The rapid development of financial technology has introduced cryptocurrency as a digital currency innovation built on Blockchain. Its emergence, however, raises fundamental questions regarding its permissibility within Islamic Law. This study aims to examine the legal status of cryptocurrency from a normative Islamic perspective and to provide practical guidance for Muslim users in modern financial transactions. The analysis focuses on the legal standing of cryptocurrency as a medium of exchange in Fiqh Muamalah, the presence of Gharar, Maysir, and riba elements, as well as the application of Sharia principles in its usage. This qualitative study employs a normative legal approach through library research, analyzing primary sources such as the Qur’an, Hadith, classical juristic works, and contemporary fatwas. Data are examined using content analysis and comparative methods based on istinbath reasoning. The findings indicate that the legal status of cryptocurrency remains contested among contemporary scholars. It involves significant gharar, may contain maysir in speculative trading practices, and shows minimal direct riba elements. Cryptocurrency is not inherently prohibited when used for legitimate transactions, provided speculative activities are avoided. The study recommends a precautionary approach and emphasizes the need for clear regulatory frameworks.

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