Ownership transfer of digital assets in Islamic wealth management: A juristic analysis

Authors

  • Saheed Abdullahi Busari International Islamic University of Malaysia
  • Hassan Suleiman International Islamic University Malaysia
  • Habeebullah Zakariyah International Islamic University Malaysia

DOI:

https://doi.org/10.24191/jeeir.v11i3.22997

Abstract

The concept of wealth transfer is a fundamental element of Islamic wealth management that promotes the creation, distribution, and transfer of wealth from one generation to another to enhance continuous ownership and benefit from (1) personal assets like jewellery, furniture appliances, (2) investment like cash savings, shares, gold and pensions, and (3) digital assets like cryptocurrencies, reward cards, vouchers, and business IP. However, growth in the acquisition of digital assets in recent times has generated concerns among legal and shariah experts about the consequences of ownership transfers after the death of the bequeather. This study aims to explicate the meaning of digital assets from an Islamic jurisprudential perspective. It also explores the meaning of true sale and its implication for digital asset acquisition and the transfer of ownership from one generation to the other. The study uses a doctrinal approach to gathering and analysing issues from a shariah perspective. This study found that despite the opportunity for wealth creation through digital assets, there are issues around ownership and transfer based on the concept of true sale, rent, gift, and endowment from the owner to third parties. The ownership right and possession to transfer a digital asset from one person to another seem unclear and deceptive because when a buyer clicks the button “buy” it might mean “rent”. To address the ownership issues in digital assets, further study can explore the presence of digital asset creators and miners from Muslim countries and the legal status of the contractual agreement to ascertain the effects and reality of ownership transfer of digital assets on the growth and development of the Muslim economy across the globe.

Author Biographies

Saheed Abdullahi Busari, International Islamic University of Malaysia

Saheed Abdullahi Busari holds the position of Assistant Professor of Islamic jurisprudence and legal theory at the Department of Fiqh & Usul al-Fiqh, AHAS-KIRKHS, International Islamic University of Malaysia (https://orcid.org/0000-0003-1933-3772). His primary research focuses on the intersection of Islamic Jurisprudence principles and socioeconomic dynamics. He has experience teaching a range of courses, including Islamic Jurisprudence, Islamic legal theory, Halal & Haram in Shariah, Islamic social finance, Leadership & Management, Islamic Inheritance and endowment, sustainability, and parenting. His comprehensive teaching and research approach emphasize how Islamic jurisprudence and legal theory contribute to the fields of socio-economic and natural sciences. As the corresponding author, he can reach at saheed@iium.edu.my.

Hassan Suleiman, International Islamic University Malaysia

Hassan Suleiman, an Assistant Professor at the Department of Fiqh & Usul al-Fiqh, AHAS-KIRKHS, International Islamic University Malaysia (https://orcid.org/0000-0002-5691-2872). He specialises in Shariah law, Principles of Islamic Jurisprudence (Usul al-fiqh) and possesses a strong Quranic foundation. His career involves teaching and research in Islamic law and jurisprudence, Islamic Legal Maxims and their application, particularly through divine revelation sources. His can be reached through his email at abuxzubair@iium.edu.my.

Habeebullah Zakariyah, International Islamic University Malaysia

Habeebullah Zakariyah, is an Associate Professor of Islamic Finance from International Islamic University Malaysia (https://orcid.org/0000-0001-8720-0440).  He is currently the deputy dean of IIBF and specialises in Islamic Jurisprudence, Maqasid Shariah, Islamic Commercial Law, Transactions in Islamic Banking and Finance, Islamic Social Finance, and contemporary issues in Zakat, waqf, and Sadaqah, Takaful, Re-Takaful, and Construction contracts. His can be reached through his email at habzak@iium.edu.my.

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Published

2023-09-30

How to Cite

Busari, S. A., Suleiman, H., & Zakariyah, H. (2023). Ownership transfer of digital assets in Islamic wealth management: A juristic analysis. Journal of Emerging Economies and Islamic Research, 11(3), 36–47. https://doi.org/10.24191/jeeir.v11i3.22997

Issue

Vol. 11 No. 3 (2023): September 2023 Issue

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Articles

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Copyright (c) 2023 Saheed Abdullahi Busari, Hassan Suleiman, Habeebullah Zakariyah

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