THE LEGALITY OF CRYPTOCURRENCY TRADE IN ACCORDANCE WITH THE PRINCIPLES OF ISLAMIC BANKING LAW

Abstract

Money is a part of human life that has an important role for human survival wherever he is. However, the creation of Cryptocurrencies makes the world stir up with the concept of digital money. For muslim users, Cryptocurrency does operate like buying and selling foreign currency in Islam called sharf, but for the validity of cryptocurrency it still raises questions, whether it is in accordance with the terms and conditions in sharf based on Islamic Banking Law. This research is a normative- conceptual approach with the process of collecting data from literature studies, whether it is from the books, journals, articles, documents, news, and also from national and international laws. In the process of analyzing data during the process of this research, it is applied the qualitative method of analysis. Which is done by describing the already gained data, knowledge and information through description or explanation which is assessed by the opinions of the experts, by laws, and also by the researcher ‗s own arguments. The result of this research is that Cryptocurrency does suitable and fulfills the terms of the contract as well as buying and selling in Islam. Cryptocurrency can be categorized as a sharf if there are regulations that can regulate the cryptocurrency trade. With the existence of clear regulations, the element of gharar (uncertainty) can be avoided. Hence, the statements and regulations from the government and national shariah board are very necessary to provide legal certainty, especially for Muslims. The making of regulations is urgent because with regulations, Cryptocurrency users do not have the right and to avoid losses.