Cryptocurrency and Digital Assets in Contemporary Islamic Law: A Cross-Madhhab Comparative Analysis of the Legality of Crypto as Currency and Investment

Abstract

This study aims to analyse the legal status of cryptocurrency and other digital assets from the perspective of contemporary Islamic law, focusing on a comparative reading of the four Sunni schools of jurisprudence (Hanafi, Maliki, Shafi'i, and Hanbali) on the status of crypto as both a currency and an investment instrument. The research uses a qualitative library-research (kepustakaan) method with a descriptive-analytical approach. Primary data were drawn from classical and contemporary fiqh literature of the four madhhabs together with official fatwas of Islamic financial authorities, while secondary data were obtained from internationally indexed journal and reports of Islamic financial institutions. Data were analysed through content analysis and cross-madhhab comparison using the frameworks of usul al-fiqh and maqasid al-shari'ah. The findings show that scholarly opinion on cryptocurrency is far from uniform: some scholars regard it as unlawful (haram) owing to the absence of an underlying asset, high volatility, and the potential for speculation (gharar), while others permit it under specific conditions such as transparency, regulation, and conformity with Shariah principles. The study concludes that a purely binary (halal-haram) approach is inadequate; a contextual, collaborative framework involving scholars, regulators, and Islamic-economy practitioners is needed to govern the responsible development of digital assets.