The Legitimacy of Cryptocurrency in Governmental and Individual Jurisprudence

Document Type : Original Article

Author

Jurisprudence & law Faculty, literature & liberal arts Department, Islamic Azad University, Islamshahr, IRAN

10.22034/ijrj.2020.675498

Abstract

Within the past decade, cryptocurrencies, including Bitcoin, have been among the resultants of information technology development in the international and even internal financial system which have had benefits such as the expansion of international currency exchanges and cheeping against challenges like increase in a number of crimes like money laundering and violations of financial and economic order of the countries. From the individual jurisprudence point of view, the cryptocurrencies are considered as a kind of property and their transactions are not usorious and uncertain (Gharar); therefore, if the trading base of cryptocurrencies is correct from the jurisprudential point of view, the exchange of cryptocurrencies is permissible in legal terms. But if the trade base of cryptocurrencies is not legitimate, their trade is void and forbidden. From the point of view of governmental jurisprudence, however, the status of cryptocurrencies exchanges is different.  In accordance with no harm, respect, government system maintannace, action (Iqdam), and justice principles, all of which prevent the implementation of inappropriate monetary policies and the excessive increase in the amount of money in the Islamic economic system, it is essential that their trading is prevented until a legal system for the control of cryptocurrencies have been created by the government in the economy of the country.

Keywords


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