The Shariah Perspective on Cryptocurrency: Insights from Malaysian Scholars

Abstract

This paper aims to underline the views and opinions of Malaysian Shariah scholars regarding the permissibility of cryptocurrency. Semi-structured interviews were conducted with three Malaysian Shariah scholars who have the authority to give rulings. This study found that two of the informants agreed that restrictions on using cryptocurrency are needed due to the bad outweighing the good, and to prevent terrible things from happening to users, especially those who have little knowledge about cryptocurrency. On the other hand, one of the informants allows the usage of cryptocurrency based on the argument that all the requirements and guidelines on cryptocurrency addressed by the securities commission must be fulfilled. This study will be helpful for Muslim investors, who deal with cryptocurrency. It is recommended to do future research on how various Islamic countries are approaching the regulation of cryptocurrency.