An Analysis of the Jurisprudential Nature of Cryptocurrency Mining

Document Type : Original Article

Authors

• Hossein Ranjbar ¹
• Vahid Omidi ²
• Sorayya Javdan ³
• Ahmad Mohammadi ⁴

¹ MA Student, Department of Fiqh and Foundations of Islamic Law, Faculty of Theology and Islamic Knowledge, University of Religions and Denominations, Qom, Iran

² MA Student, Department of Fiqh and Foundations of Islamic Law, Research Institute of Imam Khomeini and Islamic Revolution, Tehran, Iran

³ Level Four Seminary Student, Department of Fiqh and Foundations of Law, Jami’at Al-Nur Seminary, Shiraz, Iran

⁴ PhD Candidate, Department of Fiqh and Foundations of Islamic Law, Research Institute of Imam Khomeini and Islamic Revolution, Tehran, Iran

10.22067/jfiqh.2022.75678.1322

Abstract

Newly emerged events in the world of technology call on jurisconsults to make extra efforts to align them with jurisprudential institutions and dos-and-don’ts and to try to regulate them. One of these technologies is the mining of cryptocurrencies. The present study analyzes the jurisprudential nature of cryptocurrency, using the descriptive-analytical method, in order to determine the ruling on cryptocurrency mining. It is concluded that cryptocurrency mining does not align with the hire contract in terms of the manner of offer (ījāb) and the conditions of contracting parties. It is also different in subject matter from the possession of ownerless property (ḥiyāzat-i mubāḥāt). This occures optional or non-optional while cryptocurrency mining is not. In other words, it is not the case that a number of cryptocurrencies exist for a person to extract using some tools, which would be considered as mining. Rather, the person is given a certain amount of cryptocurrency in exchange for the work they have done. Cryptocurrency mining is also different from the contract of gift (Hibbah), in terms of conditions of the offeror (mujib), the acceptor (qābil), and the act of taking possession (qabż). In the end, cryptocurrency mining can be aligned with the contract of Jiʿālah ʿām. However, even in this case, considering cryptocurrency as Jiʿālah does not legitimize the act. There are several other issues such as the lack of value, the incompetent trades of mining (the state of being Safahī), etc., which may be analyzed in future research.

Keywords

• cryptocurrency mining
• jurisprudential nature
• hire contract
• Donation with consideration (Hibbah-i Maʿvaż)
• possession of ownerless propoerty (ḥiyāzat-i mubāḥāt)
• Jiʿālah

Main Subjects

• Civil jurisprudence

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