Blockchain and Its Shariah Compliant Structure

Muneeza, Aishath; Mustapha, Zakariya

doi:10.1007/978-3-030-10749-9_6

Cited by 15 publications

(16 citation statements)

References 5 publications

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“…Furthermore, shariah compliance has a very important position in Islamic financial business practices. 18 Therefore, with Islamic labelling appearing on financial products and services, institutions have to comply with shariah rules.…”

Section: Shariah Compliance In Islamic Financial Institutionsmentioning

confidence: 99%

The Shariah Compliance of Islamic Peer-to-Peer (P2P) Lending Practices in Indonesia: Identification of Issues and the Way Forward

Takidah

Kassim

2022

ICR Journal

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Shariah compliance is an important aspect of all Islamic financial instruments and transactions. With the growth of innovation in the finance industry, Islamic fintech's presence has added players, such as digital platforms, which need to comply with shariah. Therefore, this study aims to examine Islamic Peer-to-Peer (P2P) financing activity implementation as part of the fintech business model. Through a descriptive qualitative approach, a thorough analysis was conducted of digital contract papers, prospectuses, and the positions of parties involved in six Indonesian Islamic fintech companies. This involved analysing the shariah compliant quantitative characteristics of a company's prospectus, with financial reports related to interest, debt, and non-permissible income screening. The shariah compliance implementation is not only the duty of Shariah Supervisory Boards, but also involved all interested parties, namely investors, providers, partners, and business owners/borrowers. The results of the study show that shariah compliance in Islamic P2P platforms has been well enforced, therefore avoiding usury (riba), uncertainty (gharar), and gambling (maysir), while ensuring that businesses are offering halal products. Also, the results are expected to provide insight into shariah compliant fintech and how it can continue to develop in terms of Islamic financial products and services. In addition, this study can become a benchmark in the implementation of shariah compliant fintech products.

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Section: Shariah Compliance In Islamic Financial Institutionsmentioning

confidence: 99%

The Shariah Compliance of Islamic Peer-to-Peer (P2P) Lending Practices in Indonesia: Identification of Issues and the Way Forward

Takidah

Kassim

2022

ICR Journal

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“…The blockchain maintains a certain and provable account of every single transaction ever conducted on it (Allen, 2017). Overall, blockchain technology is in essence a combination of three concepts: distributed ledger, cryptography and smart contracts (Muneeza and Mustapha, 2019). Blockchain technology has not been commonly used for capital market instruments; however, this trend has begun to change.…”

Section: Understanding ṣUkūkmentioning

confidence: 99%

Ṣukūk on blockchain: a legal, regulatory and Sharī’ah review

Kunhibava

Mustapha

Muneeza

et al. 2021

IJIF

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Purpose This paper aims to explore issues arising from ṣukūk (Islamic bonds) on blockchain, including Sharīʾah (Islamic law) and legal matters. Design/methodology/approach A qualitative methodology is used in conducting this research where relevant literature on ṣukūk was reviewed. Through a doctrinal approach, the paper presents analyses on the practice of ṣukūk and ṣukūk on blockchain by discussing its legal, Sharīʾah and regulatory issues. This culminates in a conceptual analysis of blockchain ṣukūk and its peculiar challenges. Findings This paper reveals that digitizing ṣukūk issuance through blockchain remedies certain inefficiencies associated with ṣukūk transactions. Indeed, structuring ṣukūk on a blockchain platform can increase transparency of underlying ṣukūk assets and cash flows in addition to reducing costs and the number of intermediaries in ṣukūk transactions. The paper likewise brings to light legal, regulatory, Sharīʾah and cyber risks associated with ṣukūk on blockchain that confront investors, practitioners and regulators. This calls for deeper collaboration in research among Sharīʾah scholars, lawyers, regulators and information technology experts. Research limitations/implications As a pioneering subject, the paper notes the prospects of blockchain ṣukūk and the current dearth of literature on it. The paper would assist relevant Islamic capital market entities and authorities to determine the potential and impact of blockchain ṣukūk in their respective businesses and the financial system. Practical implications Blockchain ṣukūk will assist in addressing issues inherent in classical ṣukūk and in paving the way to innovative solutions that will facilitate and enhance the quality of ṣukūk transactions. For that, ṣukūk would require appropriate regulatory technology to address its governance and regulation peculiarities. Originality/value Integrating ṣukūk with blockchain technology will add value to it. The paper advances the idea that blockchain ṣukūk revolutionises ṣukūk and enhances its practice against known inadequacies.

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“…Blockchain is the latest system for gold investment or savings medium. This sophisticated blockchain technology is peer-to-peer public ledger from the computers network, which allow multiple verified transaction records (Muneeza & Mustapha, 2019). Generally speaking, blockchain technology involves the transaction for records, verification system as well as transaction storage.…”

Section: Shariah Gold Investment In Malaysiamentioning

confidence: 99%

Shariah Gold Investment in Malaysia: Prospects and Challenges

Juisin

2021

LBIBF

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Malaysia encompasses three types of offerings in gold investment platform. The often and traditional way of gold investing is through physical gold investment. The physical gold investment includes of gold bar, gold wafer, gold coin and to name a few. Since the development of the banking system, Gold Investment Account (GIA) or Gold Savings Account (GSA) was emerging beginning from the year of 2010 in Malaysia. Following, the advancement and sophisticated of financial technology (FinTech), blockchain has launched for the sake of convenience in terms of time and cost of gold storing. Notably, there are two approaches of gold investing in Malaysia viz shariah-based gold investment and conventional-based gold investment. Accordingly, this paper explores the focal of prospects and challenges on shariah gold investment in Malaysia to tap the gap of scarce studies examining the prospects and issues in gold investment. Indeed, Muslims are vital for choosing and involved on the shariah-based products and services in daily life. The gold services provider must adhere to the needs of the Shariah essence on gold transaction. The reason is to avoid the breaching on the Shariah law as well as biased to other parties. Therefore, this paper adopts the qualitative research method for the discussion. It perhaps may help and shed some light towards Shariah gold investment from the context of Malaysia.

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Blockchain and Its Shariah Compliant Structure

Cited by 15 publications

References 5 publications

The Shariah Compliance of Islamic Peer-to-Peer (P2P) Lending Practices in Indonesia: Identification of Issues and the Way Forward

The Shariah Compliance of Islamic Peer-to-Peer (P2P) Lending Practices in Indonesia: Identification of Issues and the Way Forward

Ṣukūk on blockchain: a legal, regulatory and Sharī’ah review

Shariah Gold Investment in Malaysia: Prospects and Challenges

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