How are NFT (Non-Fungible Token) transactions reviewed according to Islamic law?

Febriandika, Nur Rizqi; Fadli, Fadli; Mi’raj, Denizar Abdurrahman

doi:10.31603/burrev.6807

Cited by 4 publications

(4 citation statements)

References 17 publications

(19 reference statements)

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“…Lastly, holding an NFT can also lead to social or cultural prestige (Chalmers et al, 2022;Febriandika et al, 2022). As NFTs can be rare and limited editions, owning them indicates exclusivity and cultural prestige, much like in conventional (art) markets (Kr€ aussl et al, 2016).…”

Section: Realizable Value Layermentioning

confidence: 99%

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Probably something: a multi-layer taxonomy of non-fungible tokens

Hartwich

Ollig

Fridgen

et al. 2023

INTR

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PurposeThis paper aims to establish a fundamental and comprehensive understanding of non-fungible tokens (NFTs) by identifying and structuring common characteristics within a taxonomy. NFTs are hyped and increasingly marketed as essential building blocks of the Metaverse. However, the dynamic evolution of the NFT space has posed challenges for those seeking to develop a deep and comprehensive understanding of NFTs, their features and their capabilities.Design/methodology/approachUtilizing common guidelines for the creation of taxonomies, the authors developed (over 3 iterations), a multi-layer taxonomy based on workshops and interviews with 11 academic and 15 industry experts. Through an evaluation of 25 NFTs, the authors demonstrate the usefulness of the taxonomy.FindingsThe taxonomy has 4 layers, 14 dimensions and 42 characteristics, which describe NFTs in terms of reference object, token properties, token distribution and realizable value.Originality/valueThe authors' framework is the first to systematically cover the emerging NFT phenomenon. This framework is concise yet extendible and presents many avenues for future research in a plethora of disciplines. The characteristics identified in the authors' taxonomy are useful for NFT- and Metaverse-related research in finance, marketing, law and information systems. Additionally, the taxonomy can serve as an information source for policymakers as they consider NFT regulation.

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Section: Realizable Value Layermentioning

confidence: 99%

“…Lastly, holding an NFT can also lead to social or cultural prestige (Chalmers et al. , 2022; Febriandika et al. , 2022).…”

Section: A Multi-layer Taxonomy Of Non-fungible Tokensmentioning

confidence: 99%

Probably something: a multi-layer taxonomy of non-fungible tokens

Hartwich

Ollig

Fridgen

et al. 2023

INTR

View full text Add to dashboard Cite

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“…Returning to the concept of assets in the previous fiqh, then the value of an item becomes one of the factors that an asset can be economically viable. Digital asset transactions in the meta world in Islam are in principle permissible if they refer to the fiqh rules that state, "Al-Aṣlu fil Mu'āmalah Al-Ibāḥah" (initially all forms of muamalah are permissible) (Febriandika et al, 2022). However, when it comes to the issue of digital assets in the meta world, it is necessary to look into its components.…”

Section: Tradabilitymentioning

confidence: 99%

“…The birth of the metaverse and its various studies in the realm of intellectual property in the form of NFTs cannot escape the study of Islamic law. Some, for example, examine the issue of NFT transactions in Islamic law (Febriandika, Fadli, & Mi'raj, 2022), the view of Islamic law regarding NFT as material good in the metaverse (Liv, 2022), metaverse as a supporting system for economic development and Islamic financing , as well as cybercrimes that occur in the metaverse from the Islamic perspective (Katterbauer, Inusa, & Cleenewerck, 2022). Nonetheless, a number of Islamic legal studies related to the metaverse remain few that highlight the issue of guaranteeing digital property owned in the meta world.…”

Section: Introductionmentioning

confidence: 99%

Meta-Mortgaging: Islamic Law Review on Marhūn Issues

Muhammadi

Putranti

Praja

et al. 2022

JMH

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To this date, technology has seen massive development and, it influences the economic field. The emergence of the metaverse has become an inevitable part of this progress. It serves as a digital world, wherein everyone is able carry out a vast array of activities, including economic transactions. The emergence of digital assets, that has encouraged serious discussion, is inseparable from Islamic law. One of these digital assets is the Non-Fungible Token (NFT). This digital asset is the focus of this study, specifically on for its posibility to become material guarantees. This article employs a qualitative study and presented descriptively through the perspective of Islamic law. The result of this study is that the pledged-object (marhūn) has certain primary conditions for it to be functional, namely: it is a property, it has value, it can be traded, its asset value is clearly known, and it is actually owned by the guarantor (rāhin). The concept of marhūn as a valuable object ultimately answers that NFT is included in the marhūn category. However, since NFTs do not stand alone if the transaction currency used in the metaverse is cryptocurrencies, al-rahn transactions using NFTs become less favourable considering Cyrptocurrency is deemed to be haram.

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Lack of Protection for Non-Fungible Token (NFT) Creators in Indonesia: A Progressive Legal Study

Norasari

2022

Rechtsidee

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Technological developments require a proactive legal response, especially in providing legal protection guarantees. One of the technological developments that requires the role of law in providing protection is related to Non-Fungible Tokens (NFT) which are increasingly developing in producing works of economic value. This study aims to orientate legal protection for the creators of NFT works from a progressive legal perspective. This research is a normative legal research with a statutory approach and a concept approach. The results of the study confirm that from a progressive legal perspective, NFT is an implication of technological developments that must receive attention and protection through various legal instruments. In a progressive legal perspective, the presence of NFT requires the need for special regulations regarding NFT both at the level of the Law by revising the Copyright Law and by affirming the character of NFT through regulations under the Act. The implementation of progressive law in protecting the creators of NFT-based works is to include NFT works as part of the copyright through extensive and futuristic interpretation. In addition, the government's legal policy needs to specifically regulate NFT as well as various aspects of legal protection including: recording and issuing certificates of NFT works as well as copyrights in general. This is intended so that NFT works can become part of copyright that gets legal protection as well as guarantees legal certainty regarding the rights of creators of NFT-based works

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How are NFT (Non-Fungible Token) transactions reviewed according to Islamic law?

Cited by 4 publications

References 17 publications

Probably something: a multi-layer taxonomy of non-fungible tokens

Probably something: a multi-layer taxonomy of non-fungible tokens

Meta-Mortgaging: Islamic Law Review on Marhūn Issues

Lack of Protection for Non-Fungible Token (NFT) Creators in Indonesia: A Progressive Legal Study

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