CROSS-BORDER ISLAMIC FINANCE INNOVATION: HARMONIZING MAQASID PRINCIPLES WITH FINTECH REGULATION
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Cross-Border Regulation, Ethical Compliance, Islamic Fintech
Abstract
The rapid expansion of cross-border Islamic fintech has created unprecedented opportunities for Shariah-compliant financial innovation while exposing significant regulatory fragmentation across jurisdictions. The acceleration of digital financial ecosystems, combined with divergent interpretations of Islamic legal principles, highlights the need for governance models capable of harmonizing ethical and technological requirements. This study aims to develop a conceptual framework that integrates maqasid al-shariah principles with emerging fintech regulatory structures to support responsible, interoperable, and ethically grounded cross-border Islamic finance innovation. A qualitative exploratory design was employed, drawing on doctrinal analysis of maqasid literature, comparative review of fintech regulatory standards, and thematic synthesis of cross-border digital finance research. The findings reveal a strong conceptual alignment between maqasid objectives—such as harm prevention, transparency, and preservation of wealth—and global fintech regulatory priorities, including cybersecurity, algorithmic accountability, and consumer protection. The study demonstrates that maqasid principles can serve not only as ethical foundations but also as practical regulatory benchmarks for digital financial governance. The research concludes that harmonizing ethical frameworks with technical regulations offers a viable pathway toward reducing regulatory fragmentation and strengthening the integrity of cross-border Islamic fintech ecosystems.
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Copyright (c) 2025 Rashid Rahman, Aisha Al-Suwaidi, Lena Hoffmann
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