The Legality of Cryptocurrency (Aset Kripto) as a Waqf Asset: A Contemporary Islamic Law Analysi
Article Sidebar
-
Cryptocurrency, Digital Assets, Waqf
Abstract
The rapid growth of digital finance has introduced cryptocurrency as a novel asset class, raising profound legal and ethical questions within the framework of Islamic law. The emergence of crypto-based endowments (waqf) has sparked debates among scholars concerning the legitimacy, permanence, and Shariah compliance of digital assets as charitable instruments. This study aims to examine the legality of cryptocurrency as a potential waqf asset by exploring its compatibility with classical jurisprudential principles and contemporary Islamic financial regulations. A qualitative-deductive methodology was employed, combining doctrinal analysis of fiqh al-mu??mal?t (Islamic commercial law) with comparative evaluation of modern fatwas and regulatory policies issued by national Shariah authorities. The findings reveal that while cryptocurrencies possess economic value (m?l) and transferability, their volatility and speculative nature pose significant challenges to fulfilling the waqf requirement of asset stability and perpetuity (istibq?’ al-?ayn). However, under certain governance mechanisms—such as tokenization backed by tangible or stable assets—cryptocurrency may be conditionally recognized as a legitimate waqf instrument. The study concludes that cryptocurrency’s inclusion in Islamic endowment frameworks is permissible only through rigorous regulatory oversight, ensuring transparency, value preservation, and adherence to Shariah objectives.
Full text article
References
Abojeib, M., Mahaini, M. G., & Alchaar, M. O. (2025). An analysis of zakat disclosure in Islamic banks. Journal of Islamic Accounting and Business Research, 16(4), 811–837. https://doi.org/10.1108/JIABR-04-2021-0123
Adznan, S. B., Muhamad Sori, Z. B., & Ramadili Mohd, S. (2024). Intellectual capital disclosures (ICD) of Islamic banks under IFRS versus AAOIFI regimes: an international evidence. Journal of Islamic Accounting and Business Research, 15(6), 1009–1027. https://doi.org/10.1108/JIABR-10-2022-0284
Al Adawiyah, R. A., Adirestuty, F., Irsyad, S. M., Chazanah, I. N., Mulyani, Y. S., & Indrarini, R. (2025). Sustainability reporting and Sharia compliance in Islamic financial institutions: an empirical evaluation of emerging and developing countries. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-11-2023-0402
Ali, S., Naveed, M., Hanif, H., & Gubareva, M. (2024). The resilience of Shariah-compliant investments: Probing the static and dynamic connectedness between gold-backed cryptocurrencies and GCC equity markets. International Review of Financial Analysis, 91, 103045. https://doi.org/https://doi.org/10.1016/j.irfa.2023.103045
Ardia, D., & Bluteau, K. (2024). Twitter and cryptocurrency pump-and-dumps. International Review of Financial Analysis, 95, 103479. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103479
Ascarya, A. (2024). An investigation of waqf-based Islamic micro financial institution models to identify the most effective model for Indonesia. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-12-2022-0325
Bouteska, A., Abedin, M. Z., Hajek, P., & Yuan, K. (2024). Cryptocurrency price forecasting – A comparative analysis of ensemble learning and deep learning methods. International Review of Financial Analysis, 92, 103055. https://doi.org/https://doi.org/10.1016/j.irfa.2023.103055
Brogi, M., & Lagasio, V. (2024). New but naughty. The evolution of misconduct in FinTech. International Review of Financial Analysis, 95, 103489. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103489
Cheraghali, H., Molnár, P., Storsveen, M., & Veliqi, F. (2024). The impact of cryptocurrency-related cyberattacks on return, volatility, and trading volume of cryptocurrencies and traditional financial assets. International Review of Financial Analysis, 95, 103439. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103439
Conlon, T., Corbet, S., & McGee, R. J. (2024). The Bitcoin volume-volatility relationship: A high frequency analysis of futures and spot exchanges. International Review of Financial Analysis, 91, 103013. https://doi.org/https://doi.org/10.1016/j.irfa.2023.103013
Dimitriou, D., Tsioutsios, A., & Corbet, S. (2025). Analysing art as a safe-haven asset in times of crisis. International Review of Financial Analysis, 104, 104194. https://doi.org/https://doi.org/10.1016/j.irfa.2025.104194
Dinç, Y., Çetin, M., & Jahangir, R. (2023). Revisiting the concept of Islamic financial literacy in a boundaryless context: cross-country comparison of Islamic financial literacy. Journal of Islamic Accounting and Business Research, 14(8), 1364–1382. https://doi.org/10.1108/JIABR-02-2022-0043
Ding, S., Wu, X., Cui, T., Goodell, J. W., & Du, A. M. (2025). Modeling climate policy uncertainty into cryptocurrency volatilities. International Review of Financial Analysis, 102, 104030. https://doi.org/https://doi.org/10.1016/j.irfa.2025.104030
Dionysopoulos, L., Marra, M., & Urquhart, A. (2024). Central bank digital currencies: A critical review. International Review of Financial Analysis, 91, 103031. https://doi.org/https://doi.org/10.1016/j.irfa.2023.103031
Esparcia, C., Escribano, A., & Jareño, F. (2024). Assessing the crypto market stability after the FTX collapse: A study of high frequency volatility and connectedness. International Review of Financial Analysis, 94, 103287. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103287
Fang, Y., Chen, C. Y.-H., & Jiang, C. (2025). A flight-to-safety from Bitcoin to stock markets: Evidence from cyber attacks. International Review of Financial Analysis, 103, 104093. https://doi.org/https://doi.org/10.1016/j.irfa.2025.104093
Galati, L., & Capalbo, F. (2024). Silicon Valley Bank bankruptcy and Stablecoins stability. International Review of Financial Analysis, 91, 103001. https://doi.org/https://doi.org/10.1016/j.irfa.2023.103001
Ghallabi, F., Souissi, B., Du, A. M., & Ali, S. (2025). ESG stock markets and clean energy prices prediction: Insights from advanced machine learning. International Review of Financial Analysis, 97, 103889. https://doi.org/10.1016/j.irfa.2024.103889
Ghosh, I., Alfaro-Cortés, E., Gámez, M., & García-Rubio, N. (2024). Reflections of public perception of Russia-Ukraine conflict and Metaverse on the financial outlook of Metaverse coins: Fresh evidence from Reddit sentiment analysis. International Review of Financial Analysis, 93, 103215. https://doi.org/10.1016/j.irfa.2024.103215
Harris, R. D. F., Mazibas, M., & Rambaccussing, D. (2024). Bitcoin replication using machine learning. International Review of Financial Analysis, 93, 103207. https://doi.org/10.1016/j.irfa.2024.103207
Iqbal, M., Hakim, L., & Aziz, M. A. (2024). Determinants of Islamic bank stability in Asia. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-07-2022-0174
Karim, M. M., Shah, M. E., Noman, A. H. M., & Yarovaya, L. (2024). Exploring asymmetries in cryptocurrency intraday returns and implied volatility: New evidence for high-frequency traders. International Review of Financial Analysis, 96, 103617. https://doi.org/10.1016/j.irfa.2024.103617
Magazzino, C., Gattone, T., & Horky, F. (2025). Economic and financial development as determinants of crypto adoption. International Review of Financial Analysis, 103, 104217. https://doi.org/10.1016/j.irfa.2025.104217
Majid, N. H. A., Mohd Yusof, R., Abd Wahab, N., Abdul Rahim, M. A. A., Wiranatakusuma, D. B., & Tasman, S. M. (2025). Understanding resilience of Islamic banking amid COVID-19: a systematic literature review of banking, macroeconomic, and risk factors. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-10-2023-0356
Mat Radzi, R., W Ramli, W. N., Rahmawati, L., & Tantriana, D. (2025). Structuring e-wallet Shariah parameters: comparative insights based on Indonesian and Malaysian electronic-money rulings with a focus on the LinkAja Syariah e-wallet. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-07-2024-0249
Mehboob, I. M., Amin, H., & Ashiqin, N. (2024). Millennials’ acceptance towards Qard al-hasan: extending Islamic theory of consumer behaviour. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-04-2023-0126
Morshed, A. (2024). Comparative analysis of accounting standards in the Islamic banking industry: a focus on financial leasing. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-12-2022-0349
Nagimova, A. Z. (2023). Islamic finance in Kazakhstan: the view of experts. Journal of Islamic Accounting and Business Research, 14(8), 1195–1215. https://doi.org/10.1108/JIABR-09-2021-0265
Naqbi, S. A. Al, Nobanee, H., & Ellili, N. O. D. (2025). Global trends and insights into cryptocurrency-related financial crime. Research in International Business and Finance, 75, 102756. https://doi.org/https://doi.org/10.1016/j.ribaf.2025.102756
Patel, R., Gubareva, M., Chishti, M. Z., & Teplova, T. (2024). Connectedness between healthcare cryptocurrencies and major asset classes: Implications for hedging and investments strategies. International Review of Financial Analysis, 93, 103181. https://doi.org/10.1016/j.irfa.2024.103181
Podhorsky, A. (2024). Bursting the bitcoin bubble: Do market prices reflect fundamental bitcoin value? International Review of Financial Analysis, 93, 103158. https://doi.org/10.1016/j.irfa.2024.103158
Puschmann, T., & Huang-Sui, M. (2024). A taxonomy for decentralized finance. International Review of Financial Analysis, 92, 103083. https://doi.org/10.1016/j.irfa.2024.103083
Rasivisuth, P., Fiaschetti, M., & Medda, F. (2024). An investigation of sentiment analysis of information disclosure during Initial Coin Offering (ICO) on the token return. International Review of Financial Analysis, 95, 103437. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103437
Ševi?, A., Nerantzidis, M., Tampakoudis, I., & Tzeremes, P. (2024). Sustainability indices nexus: Green economy, ESG, environment and clean energy. International Review of Financial Analysis, 96, 103615. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103615
Shah, N., Bhatti, M. K., Anwar, S., & Soomro, B. A. (2023). Intention to adopt Islamic finance through the mediation of attitudes towards Islamic finance. Journal of Islamic Accounting and Business Research, 14(6), 931–951. https://doi.org/10.1108/JIABR-08-2022-0205
Shi, J., Firmansyah, E. A., Wang, Y., & Xu, W. (2025). Technological innovation and regulatory harmonization in Islamic finance: a systematic review and machine learning analysis (2000–2023). Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-01-2025-0026
Walker, C. B. (2024). Going mainstream: Cryptocurrency narratives in newspapers. International Review of Financial Analysis, 94, 103305. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103305
Wang, W., Enilov, M., & Stankov, P. (2025). Can cryptocurrency or gold rescue BRICS stocks amid the Russia-Ukraine conflict? International Review of Financial Analysis, 104, 104321. https://doi.org/https://doi.org/10.1016/j.irfa.2025.104321
Younis, I., Du, A. M., Gupta, H., & Shah, W. U. (2024). Dynamic spillover effects and interconnectedness of DeFi assets, commodities, and Islamic stock markets during crises. International Review of Financial Analysis, 96, 103563. https://doi.org/https://doi.org/10.1016/j.irfa.2024.103563
Zakiy, M., & Ramadhani, K. (2024). Linking perceived supervisor listening with OCBIP in Islamic financial institution: multiple mediation approach. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-09-2023-0291
Authors
Copyright (c) 2025 Hubbul Wathan, Aisha Al-Suwaidi, Miriam Hofer
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
