The Shariah Perspective on Cryptocurrency: Insights from Malaysian Scholars

Muhammad, N; Syed Alwi, S. F; Katan, M; Nasrijal, N. M. H; Buja, A. G; Siang, T. G

doi:10.7187/GJAT122024-5

Authors

Muhammad, N Academy Contemporary Islamic Studies, Universiti Teknologi MARA (UiTM), Cawangan Terengganu, Kampus Dungun, Sura Hujung, 23000 Dungun, Terengganu, Malaysia
Syed Alwi, S. F Arshad Ayub Graduate Business School, Universiti Teknologi MARA (UiTM) Shah Alam, 40450 Shah Alam, Selangor Darul Ehsan, Malaysia
Katan, M Faculty Business and Management, Universiti Teknologi MARA (UiTM), Cawangan Melaka, Kampus Bandaraya Melaka, 75350 Melaka, Malaysia
Nasrijal, N. M. H Faculty of Law, Universiti Teknologi MARA (UiTM), Cawangan Melaka, Kampus Bandaraya Melaka, 75350 Melaka, Malaysia
Buja, A. G College of Computing, Informatic and Mathematic, Universiti Teknologi MARA (UiTM), Cawangan Melaka, Kampus Jasin, Merlimau, 77300 Melaka, Malaysia
Siang, T. G Faculty of Business, Multimedia University, Bukit Beruang, 75450 Melaka, Malaysia

DOI:

https://doi.org/10.7187/GJAT122024-5

Keywords:

Cryptocurrency, Shariah, Scholars, Views, Muslim investors

Abstract

This paper aims to underline the views and opinions of Malaysian Shariah scholars regarding the permissibility of cryptocurrency. Semi-structured interviews were conducted with three Malaysian Shariah scholars who have the authority to give rulings. This study found that two of the informants agreed that restrictions on using cryptocurrency are needed due to the bad outweighing the good, and to prevent terrible things from happening to users, especially those who have little knowledge about cryptocurrency. On the other hand, one of the informants allows the usage of cryptocurrency based on the argument that all the requirements and guidelines on cryptocurrency addressed by the securities commission must be fulfilled. This study will be helpful for Muslim investors, who deal with cryptocurrency. It is recommended to do future research on how various Islamic countries are approaching the regulation of cryptocurrency.

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