Sharīʿah Standard for Crypto Assets in Indonesia: A Localised Framework

Devin Halim; Ahmad Fathi Alkatiri

doi:10.15575/am.v13i1.55121

Sharīʿah Standard for Crypto Assets in Indonesia: A Localised Framework

Authors

Devin Halim Universitas Islam Internasional Indonesia
Ahmad Fathi Alkatiri Mohamed Bin Zayed University For Humanities

DOI:

https://doi.org/10.15575/am.v13i1.55121

Keywords:

Crypto Assets, Sharīʿah Compliance, Bitcoin, Blockchain

Abstract

Sharīʿah compliance of crypto assets is examined in the Indonesian context by placing fiqh assessment within the domestic regulatory framework. In this context, crypto is legally treated as a digital commodity rather than currency. Therefore, this study aims to formulate an operational screening framework to distinguish potentially Sharīʿah-compliant and non-compliant crypto assets based on underlying characteristics, asset structure, valuation basis, and transaction mechanisms. Fiqh muʿāmalah principles, the 2021 MUI Ijtimāʿ ʿUlamāʾ ruling, relevant DSN-MUI fatwās, AAOIFI references, and Indonesian crypto regulations are analysed using a qualitative doctrinal legal method. The proposed framework distinguishes between asset-level and transaction-level screening, particularly in assessing halal underlying utility, gharar, maysir/qimār, ribā exposure, silʿah requirements, and transaction validity. The framework is applied to four illustrative assets, namely Bitcoin (BTC), Ethereum (ETH), CasinoCoin (CSC), and Blockchain Capital Token (BCAP). The results show that Ethereum satisfies the utility criterion, subject to Sharīʿah-compliant use and transaction mechanisms. Bitcoin remains a contested case because legal classification as a commodity does not automatically resolve valuation gharar and silʿah concerns. CasinoCoin is non-compliant due to its direct connection with gambling, while BCAP requires further review because of insufficient clarity regarding contract structure, portfolio composition, and Sharīʿah screening. The study contributes a structured and reviewable screening model to support Sharīʿah governance, regulatory development, and technology-based Islamic financial innovation in Indonesia.

References

Ahmed, Habib. ‘Security Tokens, Ecosystems and Financial Inclusion: Islamic Perspectives’. International Journal of Islamic and Middle Eastern Finance and Management 17, no. 4 (2024): 730–45. https://doi.org/10.1108/IMEFM-04-2024-0195.

Aksoy, Pınar Çağlayan, Larry Dimatteo, and Saskia Hufnagel. Routledge Handbook of NFT Law. 1st edn. Routledge, 2025. https://doi.org/10.4324/9781032690667.

Alam, Nafis, Lokesh Gupta, and Abdolhossein Zameni. ‘Application of Blockchain in Islamic Finance Landscape’. In Fintech and Islamic Finance, by Nafis Alam, Lokesh Gupta, and Abdolhossein Zameni. Springer International Publishing, 2019. https://doi.org/10.1007/978-3-030-24666-2_5.

Al-Shīrāzī, Abū Isḥāq Ibrāhīm ibn ʿAlī. Al-Muhadhdhab Fī Fiqh al-Imām al-Shāfiʿī. Vol. 1. Dār al-Fikr, n.d.

Binekasri, Romys. ‘Transkasi Kripto RI Tembus Rp482,23 Triliun Sepanjang 2025’. CNBC Indonesia, 9 January 2026. https://www.cnbcindonesia.com/market/20260109110200-17-700964/transkasi-kripto-ri-tembus-rp48223-triliun-sepanjang-2025.

Briola, Antonio, David Vidal-Tomás, Yuanrong Wang, and Tomaso Aste. ‘Anatomy of a Stablecoin’s Failure: The Terra-Luna Case’. Finance Research Letters 51 (January 2023): 103358. https://doi.org/10.1016/j.frl.2022.103358.

Chong, Felicia Hui Ling. ‘Enhancing Trust through Digital Islamic Finance and Blockchain Technology’. Qualitative Research in Financial Markets 13, no. 3 (2021): 328–41. https://doi.org/10.1108/QRFM-05-2020-0076.

El Islamy, Hurriyah. ‘The Challenges of Cryptocurrencies and the Shariah Paradigm’. In Islamic FinTech, edited by Mohd Ma’Sum Billah. Springer International Publishing, 2021. https://doi.org/10.1007/978-3-030-45827-0_22.

Ethereum Foundation. ‘Ethereum Staking: How Does It Work?’ Ethereum.Org, 2022. https://ethereum.org/staking/.

Faizi. ‘Are Cryptocurrencies Ḥaram? A Critical Analysis toward MUI’s Fatwā’. AL-IHKAM: Jurnal Hukum & Pranata Sosial 18, no. 2 (2023): 420–42. https://doi.org/10.19105/al-lhkam.v18i2.8290.

Gaol, Christopher Panal Lumban. ‘Indonesia Cryptocurrencies in Islamic Law’. The International Journal of Humanities & Social Studies, ahead of print, 21 June 2023. https://doi.org/10.24940/theijhss/2023/v11/i5/HS2305-018.

Garratt, Rodney, and Maarten R. C. van Oordt. Crypto Exchange Tokens. No. 1201. BIS Working Papers. Bank for International Settlements, 2024. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4773455.

Ghazlān, Tasnīm ʿAbd al-Majīd Aḥmad. ‘“Al-ʿUmlāt al-Raqmiyyah ‘al-Bitkūyn’ – Dirāsah Fiqhiyyah Muqāranah”’. Majallat Kulliyyat Al-Sharīʿah Wa-l-Qānūn Bi-Asyūṭ 34, no. 2 (2022): 1238–335. https://doi.org/10.21608/jfsu.2022.214535.

Habib, Gousia, Sparsh Sharma, Sara Ibrahim, Imtiaz Ahmad, Shaima Qureshi, and Malik Ishfaq. ‘Blockchain Technology: Benefits, Challenges, Applications, and Integration of Blockchain Technology with Cloud Computing’. Future Internet 14, no. 11 (2022): 341. https://doi.org/10.3390/fi14110341.

Hutchinson, Terry, and Nigel Duncan. ‘Defining and Describing What We Do: Doctrinal Legal Research’. Deakin Law Review 17, no. 1 (2012): 83. https://doi.org/10.21153/dlr2012vol17no1art70.

IBM. ‘What Is Cryptography?’ IBM, 14 November 2023. https://www.ibm.com/think/topics/cryptography.

Indonesian Ulema Council (MUI). Fatwa on the Legal Status of Cryptocurrency. Indonesian Ulema Council (MUI), 2021.

Karim, Sitara, Brian M. Lucey, Muhammad Abubakr Naeem, and Gazi Salah Uddin. ‘Examining the Interrelatedness of NFTs, DeFi Tokens and Cryptocurrencies’. Finance Research Letters 47 (June 2022): 102696. https://doi.org/10.1016/j.frl.2022.102696.

Khalid, Muhammad Irfan, Ibtisam Ehsan, Ayman Khallel Al-Ani, et al. ‘A Comprehensive Survey on Blockchain-Based Decentralized Storage Networks’. IEEE Access 11 (2023): 10995–1015. https://doi.org/10.1109/ACCESS.2023.3240237.

Khālid, Rawāq. ‘“Al-ʿUmlāt Al-Mushaffarah: Al-Bitkūyn Anmūdhajan: Madā Muwākabat al-Takyīf al-Fiqhī Wa-l-Sharʿī Li-l-Wāqiʿ al-Muʿāṣir”’. Majallat Āfāq Li-l-Buḥūth Wa-l-Dirāsāt 4, no. 2 (2021): 485–502.

Kirchner, Irene K. F. ‘Are Cryptocurrencies Ḥalāl? On the Sharia-Compliancy of Blockchain-Based Fintech’. Islamic Law and Society 28, nos 1–2 (2020): 76–112. https://doi.org/10.1163/15685195-BJA10005.

Kusuma, Teddy, Veithzal Rivai Zainal, Iwan Kurniawan Subagja, and Salim Basalamah. ‘The Perspective of Islamic Law on Cryptocurrency for Commodity Future Exchange in Indonesia’. Journal of Islamic Studies and Culture 8, no. 1 (2020). https://doi.org/10.15640/jisc.v8n1a1.

M. Usman, Uju Suji’ah, and Muh. Nashirudin. ‘CRYPTOCURRENCY IN ISLAMIC LAW’. Jurnal Multidisipliner Bharasa 1, no. 1 (2022): 45–56. https://doi.org/10.56691/jurnalmultidisiplinerbharasa.v1i1.6.

Mirdala, Rajmund. ‘Tokenization of Real-World Assets: Legal Frameworks, Market Dynamics, and Policy Pathways for a Decentralized Financial Future’. Journal of Applied Economic Sciences (JAES) 20, no. 16 (2025): 285. https://doi.org/10.57017/jaes.v20.2(88).09.

Mohammed, Mustafa Omar, Mohamed Cherif El Amri, and Ayman Mohammad Bakr. ‘Guiding Fiqh Analysis of Crypto Assets: A Proposed Framework’. AHKAM : Jurnal Ilmu Syariah 24, no. 2 (2024): 277–94. https://doi.org/10.15408/ajis.v24i2.37346.

Mohd Noh, Mohd Shahid, Suffian Haqiem Nor Azelan, and Muhammad Izzul Syahmi Zulkepli. ‘A Review on Gharar Dimension in Modern Islamic Finance Transactions’. Journal of Islamic Accounting and Business Research 16, no. 5 (2025): 976–89. https://doi.org/10.1108/JIABR-01-2023-0006.

Muḥammad, Zakariyyā Ḥāfiẓ, and Muḥammad Sulaymān al-Nūr. ‘Qāʿidat Al-Manāfiʿ Lahā Ḥukm al-Aʿyān: Dirāsah Taʾṣīliyyah’. Majallat Jāmiʿat Al-Shāriqah Li-l-ʿUlūm al-Sharʿiyyah Wa-l-Dirāsāt al-Islāmiyyah 19, no. 3 (2022): 384–429. https://doi.org/10.36394/jsis.v19.i3.13.

Mukhoyyaroh, Binta Tsulutsi. ‘Viewing the Islamic Financial System, Islamic Views and Answers About Cryptocurrency’. Khazanah: Jurnal Mahasiswa 13, no. 4 (2022). https://doi.org/10.20885/khazanah.vol13.iss4.art11.

Nakamoto, Satoshi. ‘Bitcoin: A Peer-to-Peer Electronic Cash System’. SSRN Electronic Journal, ahead of print, 2008. https://doi.org/10.2139/ssrn.3440802.

Qadri, Hussain Mohi Ud Din, Fareed Ahmad Malik, Muhammad Mumtaz Ul Hassan, and Muhammad Azhar Abbasi. ‘Exploring Crypto Currency through the Lens of the Sharī‘a Law: A Comparative Analysis of Scholarly Evaluations’. Journal of Islamic Thought and Civilization 13, no. 2 (2023): 324–34. https://doi.org/10.32350/jitc.132.21.

Saddhono, Kundharu, Andri Pitoyo, Nada Afra, R. Kunjana Rahardi, Ida Yeni Rahmawati, and Nur Agus Salim. ‘Tokenizing Literary Assets: Blockchain Applications in Intellectual Property Management’. 2025 International Conference on Frontier Technologies and Solutions (ICFTS), 27 March 2025, 1–9. https://doi.org/10.1109/ICFTS62006.2025.11031902.

Salehijam, Maryam. ‘The Value of Systematic Content Analysis in Legal Research’. Tilburg Law Review 23, no. 0 (2018): 34. https://doi.org/10.5334/tilr.5.

Scharfman, Jason. The Cryptocurrency and Digital Asset Fraud Casebook, Volume II: DeFi, NFTs, DAOs, Meme Coins, and Other Digital Asset Hacks. Springer Nature Switzerland, 2024. https://doi.org/10.1007/978-3-031-60836-0.

Shukla, Gaurav. ‘Doctrinal Legal Research: A Library-Based Research’. In Advances in Knowledge Acquisition, Transfer, and Management, edited by Candauda Arachchige Saliya. IGI Global, 2023. https://doi.org/10.4018/978-1-6684-6859-3.ch015.

Siregar, Emiel Salim, Widya Manurung, Rudi Gunawan, et al. ‘Kepastian Hukum Aset Kripto Sebagai Instrumen Investasi Dalam Persfektif Hukum Islam Dan Hukum Positif’. El-Mujtama: Jurnal Pengabdian Masyarakat 4, no. 1 (2023): 181–92. https://doi.org/10.47467/elmujtama.v4i1.3249.

Sockin, Michael, and Wei Xiong. ‘A Model of Cryptocurrencies’. Management Science 69, no. 11 (2023): 6684–707. https://doi.org/10.1287/mnsc.2023.4756.

Suyūṭī, Jalāl al-Dīn ʿAbd al-Raḥmān ibn Abī Bakr al-. Al-Ashbāh Wa al-Naẓāʾir. Dār al-Kutub al-ʿIlmiyyah, n.d.