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Abstract

This study examines the legitimacy of issuing and dealing in cryptocurrencies in light of Shariah and legal regulations, within the context of the rapid transformations experienced by the financial sector as a result of technological development and the widespread use of blockchain and encryption technologies. It is based on a central research question concerning whether cryptocurrencies can be regarded as money in the economic and legal sense, or rather as digital assets of a special nature, and the legal consequences this classification entails for their regulation and circulation. The study adopts a descriptive, analytical, and comparative approach to clarify the concept of money, its functions and characteristics, and to assess the extent to which these criteria apply to cryptocurrencies. It highlights key features such as decentralization, price volatility, and the absence of an issuing authority and legal backing. The research also examines the mechanisms of issuing and trading cryptocurrencies, particularly through mining and blockchain technology, and the challenges these mechanisms raise in relation to financial security, money laundering, and consumer protection. From a legal perspective, the study reveals divergent legislative and judicial approaches at the comparative level and tends to classify cryptocurrencies, in their current form, as intangible movable property rather than legal currency. From a Shariah perspective, it reviews the main scholarly opinions and fatwas, noting that the predominant view prohibits dealing in cryptocurrencies due to elements of uncertainty (gharar), risk, harm, and the absence of state recognition, while an alternative opinion allows them subject to specific conditions. The study concludes by emphasizing the need to adopt a balanced legal and regulatory framework that integrates cryptocurrencies into a legitimate and supervised system, in a manner that achieves the objectives of Islamic law, protects market participants, and ensures the stability of the financial system.

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