Do Islamic Cryptocurrencies Provide Diversification Opportunities to Indonesian Islamic Investors?

Rizvi, Syed Aun R.; Ali, Mohsin

doi:10.21098/jimf.v8i3.1563

Cited by 3 publications

(2 citation statements)

References 31 publications

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“…Cryptocurrency is a commodity/asset that fulfills the requirements of a Sil'ah and has underlying and clear legal benefits to be traded (Harahap, Anggraini, & Asmuni, 2022). Besides cryptocurrency conventions, there are also Islamic Sharia-based cryptocurrencies that are guaranteed by assets in the form of gold, namely Onegram and X8X (Rizvi & Ali, 2022). A digital asset, on the other hand, is an object that exists in an electronic system and has value, and can be owned and controlled by both natural persons and legal entities.…”

Section: Resultsmentioning

confidence: 99%

Cryptocurrency assets as a physical collateral in Indonesia

Wardoyo

Hapsari

2023

LJIH

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Cryptocurrency investment is currently expanding quickly on a global scale as well as in Indonesia. On the one hand, cryptocurrency can be used as a medium of exchange or a form of money, which represents the original purpose of cryptocurrency. On the other hand, it can also be used as a commodity or as digital assets, also known as crypto assets. Cryptocurrency is illegal to use as money in Indonesia, but it is legal to exchange it as an asset. This study explores the legal protections for holders of collateral against the loss of crypto assets as well as how crypto assets are governed by material guarantees in Indonesia. A conceptual and statutory approach, technical analysis, and a normative legal research methodology were applied in the study. The legal material was analyzed by using the content analysis approach, which involved examining the content and legality of the material gleaned from various laws and regulations by looking at the relevant legal precedents. The discussion results discover that crypto assets fall under the definition of "intangible movable objects" as defined in article 503 BW. In addition, crypto assets had material rights in the form of material guarantees in the form of a pledge and fiduciary guarantees, allowing the parties to carry out their agreements in good faith even in the event that the collateral object is lost. These disputes could be settled through either non-litigation or litigation.

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Section: Resultsmentioning

confidence: 99%

Cryptocurrency assets as a physical collateral in Indonesia

Wardoyo

Hapsari

2023

LJIH

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“…Muslim investors are only permitted to invest in shariah-compliant assets, which are the only assets that can be used to construct and diversify their portfolio (Maghyereh et al, 2019;Muryanto et al, 2021;Alahouel and Loukil, 2021). In their study of the Gulf Cooperation Countries, Aloui et al (2015) discovered IJLMA 66,2 that investing in Á sukūk can be a feasible hedging strategy for Islamic equity portfolio holders, specifically during tumultuous economic periods (Rizvi and Ali, 2022).…”

Section: Methodsmentioning

confidence: 99%

Islamic crypto assets and regulatory framework: evidence from Indonesia and global approaches

Wiwoho,

Trinugroho,

Kharisma

et al. 2023

IJLMA

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Purpose The purpose of this study is to formulate a governance and regulatory framework for Islamic crypto assets (ICAs). A balanced regulatory framework is required to protect consumers and to encourage digital Islamic finance innovation. Design/methodology/approach This study focuses on Indonesia and compares it to other countries, specifically Malaysia and the UK, using statutory, comparative and conceptual research approaches. Findings The ICAs are permissible (halal) commodities/assets to be traded if they fulfil the standards as goods or commodities that can be traded with a sale and purchase contract (sil’ah) and have an underlying asset (backed by tangible assets such as gold). Islamic social finance activities such as zakat and Islamic microfinance activities such as halal industry are backed by ICAs. The regulatory framework needed to support ICAs includes the Islamic Financial Services Act, shariah supervisory boards, shariah governance standards and ICA exchanges. Research limitations/implications This study only examined crypto assets (tokens as securities) and not cryptocurrencies. It used regulations in several countries with potential in Islamic finance development, such as Indonesia, Malaysia and the UK. Practical implications The ICA regulatory framework is helpful as an element of a comprehensive strategy to develop a lasting Islamic social finance ecosystem. Social implications The development of crypto assets must be supported by a regulatory framework to protect consumers and encourage innovation in Islamic digital finance. Originality/value ICA has growth prospects; however, weak regulatory support and minimal oversight indicate weak legal protection for consumers and investors. Regulating ICA, optimising supervision, implementing shariah governance standards and having ICA exchanges can strengthen the Islamic economic ecosystem.

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