The Legality of Cryptocurrency in the Perspective of Sharia Economic Law

Abstract

This study analyzes the legality of Cryptocurrency from the perspective of Sharia economic law. Cryptocurrency, as a form of digital currency that uses blockchain technology, has grown rapidly throughout the world, bringing significant impacts to the global economic system. However, the legality of using Cryptocurrency continues to be a hot topic of debate, especially among Muslims, due to doubts regarding its compliance with the principles of Sharia economics. To assess the legality of Cryptocurrency, the author conducted a literature review of various basic principles of Sharia economics, such as the prohibition of riba (interest), dharar (danger), gharar (uncertainty), and the principle of justice and certainty in transactions. This study also examines the characteristics of Cryptocurrency, including high volatility in value, unhealthy speculation, and the potential for misuse in transactions using Cryptocurrency. The results of this study indicate that although Cryptocurrency offers a number of advantages such as ease of transaction, efficiency, and higher transparency, there are a number of aspects that conflict with the principles of Sharia economics. For example, high uncertainty in the value of Cryptocurrency and speculation that can lead to gambling practices (maysir) and the potential for disproportionate losses can lead to injustice in transactions. Based on this analysis, it can be concluded that Cryptocurrency, in its current form, does not meet the criteria in accordance with Sharia economic law, so it can be considered haram. This study also underlines the importance of clearer and stricter regulations to ensure that the use of Cryptocurrency can be regulated in accordance with Sharia principles that prioritize justice, transparency, and legal certainty in every economic transaction.