JEFMS Journal

Google Scholar

Article Pdf

---

ABSTRACT:

The rapid growth of the sharia and halal product industry marks a positive development in global market share. Even though it is run according to conventional management principles, the sharia industry faces significant challenges in adopting new technology, especially in the sharia financial sector such as Fintech. This research aims to explore the extent to which sharia principles can adapt to modern technological innovations such as cryptocurrencies, blockchain, crowdfunding and P2P Lending. The Islamic finance industry is responding to technological challenges by developing technology-based solutions according to sharia principles. Collaboration between industry and religious authorities is considered crucial to provide clear guidelines and fatwas regarding the use of technology in a sharia context.

KEYWORDS:

sharia finance, Islamic finance, sharia industry, Islamic fintech

REFERENCES:

1) Ajouz, M., Abdullah, A., & Kassim, S. (2019). Developing a Sharīʿah-compliant precious metal backed cryptocurrency. Journal of King Abdulaziz University: Islamic Economics, 33(1), 3–20.

2) Alaeddin, O., Al Dakash, M., & Azrak, T. (2021). Implementing the blockchain technology in islamic financial industry: Opportunities and challenges. Journal of Information Technology Management, 13(3), 99–115.

3) Al-Hussaini, N., Ibrahim, A., Noordin, M., & Mohadis, H. M. (2020, March 30). Islamic approach toward purification of transaction with cryptocurrency. https://www.semanticscholar.org/paper/Islamic-approach-toward-purification-of- transaction-Al-Hussaini-Ibrahim/08e1a04105a891f61a1fe8d4a23ecb36b92bbf0f

4) Ali, H., Abdullah, R., & Zaini, M. Z. (2019). Fintech and its potential impact on Islamic banking and finance industry: A case study of Brunei Darussalam and Malaysia. International Journal of Islamic Economics and Finance (IJIEF), 2(1), 73–108.

5) Ali, M. H., Chung, L., Kumar, A., Zailani, S., & Tan, K. H. (2021). A sustainable Blockchain framework for the halal food supply chain: Lessons from Malaysia. Technological Forecasting and Social Change, 170, 120870. https://doi.org/10.1016/j.techfore.2021.120870

6) Aloui, C., Ben Hamida, H., & Yarovaya, L. (2020). Are Islamic Gold-backed cryptocurrencies different? Finance Research Letters, 39, 101615. https://doi.org/10.1016/j.frl.2020.101615

7) Al-Sakran, H., & Al-shamaileh, O. (2021). P2P islamic investments using blockchain, smart contract and E-negotiation. Journal of Theoretical and Applied Information Technology, 99, 59–74.

8) Azganin, H., Kassim, S., & Sa’ad, A. A. (2021). Proposed waqf crowdfunding models for small farmers and the requiredparameters for their application. Islamic Economic Studies, 29(1), 2–17. https://doi.org/10.1108/IES-01-2021-0006

9) Busari, S. A., & Aminu, S. O. (2021). Application of blockchain information technology in Ṣukūk trade. Journal of IslamicAccounting and Business Research, 13(1), 1–15.

10) Chong, F. H. L. (2021). Enhancing trust through digital Islamic finance and blockchain technology. Qualitative Research in Financial Markets, 13(3), 328–341. https://doi.org/10.1108/QRFM-05-2020-0076

11) Delle Foglie, A., Panetta, I. C., Boukrami, E., & Vento, G. (2021). The impact of the Blockchain technology on the global Sukuk industry: Smart contracts and asset tokenisation. Technology Analysis & Strategic Management, 0(0), 1–15. https://doi.org/10.1080/09537325.2021.1939000

12) El Islamy, H. (2021). The Challenges of Cryptocurrencies and the Shariah Paradigm. Islamic FinTech: Insights and Solutions, 407–428.

13) Erisna, N., Tarmizi, R., & Redaputri, A. P. (2020). The Role Of Fintech And Sharia Banking Industries In Increasing Economics Inclusion In Indonesia. 9(02).

14) Ethis. (2022). The rise of the Halal industry and tech innovations in 2022 [Company Website]. Ethis Malaysia. https://ethis.co/blog/rise-halal-industry-tech-innovations-2022/

15) Haerisma, A. S. (2022). Cryptocurrency in The Perspective of Maqasid Al-Shariah: A Critical Analysis of the Mafsadah (Harm) and the Maslahah (Benefit) of Cryptocurrency Cryptocurrency. Afkaruna, 18(1), 110–139.

16) Hanif, M. (2020). Developing a fair currency system. ISRA International Journal of Islamic Finance, 12(3), 325–345. https://doi.org/10.1108/IJIF-02-2019-0024

17) Hapsari, M. I., Bin Mohd Thas Thaker, M. A., Mohammed, M. O., & Duasa, J. (2021). A qualitative investigation into crowdfunding framework as a source of financing for waqf land development. Journal of Islamic Accounting and Business Research, 13(3), 425–443. https://doi.org/10.1108/JIABR-10-2020-0311

18) Hendratmi, A., Ryandono, M. N. H., & Sukmaningrum, P. S. (2019). Developing Islamic crowdfunding website platform for startup companies in Indonesia. Journal of Islamic Marketing, 11(5), 1041–1053. https://doi.org/10.1108/JIMA-02-2019- 0022

19) Hui, H. W., Manaf, A. W. A., & Shakri, A. K. (2019). Fintech and the transformation of the Islamic finance regulatory framework in Malaysia. In Emerging issues in Islamic finance law and practice in Malaysia (pp. 211–222). Emerald Publishing Limited. https://www.emerald.com/insight/content/doi/10.1108/978-1-78973-545-120191018/

20) Ishak, M. S. I., Kamaruddin, M. H., & Aderemi, A. M. R. (2022). Mudharabah based crowdfunding as an alternative source of funding book publications in Malaysia. Journal of Islamic Marketing, 13(9), 1973–1987.

21) Khan, S. N. (2022). The legality of cryptocurrency from an Islamic perspective: A research note. Journal of Islamic Accounting and Business Research, 14(2), 289–294. https://doi.org/10.1108/JIABR-02-2022-0041

22) Kirchner, I. K. F. (2021). Are Cryptocurrencies Halal? On the Sharia-Compliancy of Blockchain-Based Fintech. Islamic Law and Society, 28, 76.

23) Laldin, M. A., & Djafri, F. (2019). Islamic finance in the digital world: Opportunities and challenges (Kewangan Islam dalam Dunia Digital: Peluang dan Cabaran). Journal of Islam in Asia (E-ISSN 2289-8077), 16(3), 283–299.

24) Muhammad, R., Fakhrunnas, F., & Hanun, A. K. (2021). The Determinants of Potential Failure of Islamic Peer-to-Peer Lending: Perceptions of Stakeholders in Indonesia. Journal of Asian Finance, Economics and Business, 8, 981–992. https://doi.org/10.13106/jafeb.2021.vol8.no2.0981

25) Oziev, G., & Yandiev, M. (2017). Cryptocurrency from Shari’ah Perspective (SSRN Scholarly Paper 3101981).https://doi.org/10.2139/ssrn.3101981

26) Rabbani, M. R. (2022). Fintech innovations, scope, challenges, and implications in Islamic Finance: A systematic analysis. International Journal of Computing and Digital Systems, 11(1), 1–28.

27) Rabbani, M. R., Khan, S., & Thalassinos, E. I. (2020). FinTech, blockchain and Islamic finance: An extensive literature review.

28) Rahman, M. P., Mohd Thas Thaker, M. A., & Duasa, J. (2020). Developing a Sharīʿah-compliant equity-based crowdfunding framework for entrepreneurship development in Malaysia. ISRA International Journal of Islamic Finance, 12(2), 239–252. https://doi.org/10.1108/IJIF-07-2018-0085

29) Saiti, B., Afghan, M., & Noordin, N. H. (2018). Financing agricultural activities in Afghanistan: A proposed salam-based crowdfunding structure. ISRA International Journal of Islamic Finance, 10(1), 52–61. https://doi.org/10.1108/IJIF-09-2017- 0029

30) Shinkafi, A. A., Yahaya, S., & Sani, T. A. (2020). Realising financial inclusion in Islamic finance. Journal of Islamic Marketing, 11(1), 143–160.

31) Siswantoro, D., Handika, R., & Mita, A. F. (2020). The requirements of cryptocurrency for money, an Islamic view. Heliyon, 6(1), e03235. https://doi.org/10.1016/j.heliyon.2020.e03235

32) Tijjani, B., Ashiq, M., Siddique, N., Khan, M. A., & Rasul, A. (2021). A bibliometric analysis of quality research papers in Islamic finance: Evidence from Web of Science. ISRA International Journal of Islamic Finance, 13(1), 84–101.

33) Virgana, R. a. E., Harahap, P., & Anwar, T. A. (2018). CONCEPTUAL RESEARCH: SHARIA-BASED CRYPTOCURRENCY. 3rd International Conference on Management Economics and Business of Universitas Mercu Buana (ICMEB), 21-22. http://repository.widyatama.ac.id/xmlui/handle/123456789/9912