Cryptocurrency as Waqf Asset: An Islamic Legal Analysis

Abstract

This study explores the legal and theological viability of cryptocurrency as a waqf asset within the framework of Indonesian law and Islamic jurisprudence. While cryptocurrency has gained global attention as a digital financial instrument, its classification as a māl mutaqawwim—a property eligible for Islamic endowment—remains contested among scholars and regulators. Drawing on normative juridical analysis and supported by Indonesia’s regulatory instruments (e.g., Bappebti Regulation No. 5/2019 and Fatwa MUI No. 3/2021), this research examines whether cryptocurrency can fulfill the essential characteristics of waqf assets: permanence, lawful benefit, and economic value. The study finds that cryptocurrency, particularly in its commodity form, may qualify as an eligible waqf asset if managed under stable, transparent, and Shariah-compliant frameworks. The integration of blockchain technology into waqf management further strengthens this potential by ensuring accountability, traceability, and real-time auditing. However, key challenges—including asset volatility, legal uncertainty, technical capacity gaps, and fragmented religious interpretations—pose significant barriers to implementation. Through expert perspectives from Islamic fintech practitioners such as Imam Nur Aziz and social behavior analysts like Yuswohady, the research highlights the importance of policy innovation, regulatory clarity, and institutional readiness. The paper contributes to the discourse on Islamic digital finance by proposing a structured pathway for integrating cryptocurrency into productive waqf schemes. It concludes by recommending regulatory sandbox approaches and future empirical studies to assess crypto-waqf models in practice.