A Comprehensive Review of Digital Assets in Shariah Law: Evaluating Cryptocurrency within the Framework of Muamalat Jurisprudence

Abstract

The rapid emergence of digital assets, specifically cryptocurrency, has transformed modern finance, introducing significant challenges and opportunities within the framework of Islamic finance. Grounded in Shariah law, the concept of muamalat governs Islamic commercial transactions, establishing principles that define permissible financial activities. This paper reviews the current literature on digital assets from an Islamic perspective, critically evaluating the legitimacy, risks, and ethical considerations of cryptocurrency within muamalat jurisprudence. Findings indicate a divided opinion among Shariah scholars, with some advocating conditional acceptance and others opposing cryptocurrency due to its volatility, lack of intrinsic value, and speculative nature. This study contributes to ongoing discussions by providing a structured framework for assessing cryptocurrency in alignment with Islamic finance principles.