EPISTEMOLOGY OF ISLAMIC LAW TOWARDS CRYPTOCURRENCIES: AN ANALYSIS OF FIQH CLASSIFICATION, FUNCTION OF CURRENCIES, AND IMPLICATIONS OF EXCHANGE LAW IN A SHARIA PERSPECTIVE

Abstract

This study examines the epistemology of Islamic law in establishing rulings on contemporary phenomena, focusing on cryptocurrency as the object of study. Through a fiqh-comparative analysis approach combining library research with qualitative analysis of classical and contemporary jurisprudential sources, this research investigates the methodological foundations employed by scholars in determining the legal status of cryptocurrency. The study finds that fundamental principles of usul al-fiqh—particularly original permissibility, harm elimination, and sharia objectives—provide robust frameworks for analyzing novel financial instruments. The analysis reveals three primary classifications in contemporary discourse: as property, currency, or digital asset, each carrying distinct legal implications for exchange, zakat applicability, and contractual validity.