A NEED FOR ISTIHSAN IN THE CONTEXT OF CRYPTO ASSETS
DOI:
https://doi.org/10.37231/mjis.2026.10.1.310Abstract
This study aims to explore the necessity of istihsan (juridical preference) to reassess the Shariah-compliance of crypto-assets considering digital financial developments. Initially, Islamic scholars predominantly rejected crypto-assets due to speculative nature, lack of intrinsic value, and regulatory absence. However, with recent regulations, crypto-assets have become more reliable, while some kinds of crypto-assets are backed with real-world-assets, making them relatively more stable, which brings the question of re-evaluating their status under Islamic law. The study employs a qualitative, analytical, and literature-based approach. It reviews the literature on previous rulings and discussions on the aspects of cryptocurrency, crypto-assets and blockchain and examines the need for istihsan with contemporary financial developments, thereby challenging previous arguments for their adverse assessment. The findings reveal that current regulatory frameworks have strengthened the security and legitimacy of crypto-transactions, making Islamic legal reassessment necessary. Through istihsan, Islamic scholars should incorporate public interest (maslahah) and re-evaluate the updated status of crypto-assets in terms of fiqh principles. This research contributes to the literature by proposing a Shariah-compliant reassessment of crypto-assets, integrating istihsan into this reassessment ensures a balanced approach that aligns financial innovation with Shariah principles, addressing both contemporary financial realities and the broader public interest.
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