Matin Research Journal

Matin Research Journal

Assessing the Legal Value (Māliyyat) of Cryptocurrencies with Emphasis on the Foundations of Imam Khomeini

Document Type : Original Article

Authors
Ahmad Ali Yousefi 1
Ahmad Mohammadi 2
1 Associate Professor, Islamic Culture and Thought Research Institute, Tehran, Iran.
2 PhD (Jurisprudence and Fundamentals of Islamic Law), Research Institute of Imam Khomeini and Islamic Revolution, Tehran, Iran.
10.22034/matin.2021.293697.1903
Abstract
Today, cryptocurrencies, as a new form of money, have become the focus of attention for both small and large investors and account for a significant portion of transactions. The novelty of this type of currency and the numerous ambiguities regarding their nature have caused confusion and doubt in society about how to deal with them. One of the most important challenges in this regard is whether cryptocurrencies possess legal value (māliyyat). Given that in Imami jurisprudence, the possession of legal value by both the price and the goods sold is considered a condition for the validity of a sale, this research first examines the concept of legal value and Imam Khomeini's definition of it. Then, based on his definition and foundations regarding this issue, the existing ambiguities concerning the legal value of cryptocurrencies are re-examined and analysed. Imam Khomeini considers the basis and foundation of the legal value of any object to be the degree of desire (raghbat) of discerning rational individuals ('uqalā'). Based on this definition, criteria such as having benefit, political considerations, transferability, and legitimacy are effective in the desire or lack thereof of rational individuals towards cryptocurrencies. Legitimacy and the extent of its influence on the desire of rational individuals towards cryptocurrencies is the most important challenge in this field. Since Imam Khomeini considers illegitimacy to be a barrier to the consequent effects of legal value, this matter was researched and analysed in three sections: primary ruling (ḥukm awwalī), secondary ruling (ḥukm thānawī), and governmental ruling (ḥukm ḥukūmatī). It became clear that the doubts surrounding the illegitimacy of the cryptocurrency market in these three areas are unfounded, and according to the foundations of Imam Khomeini, cryptocurrencies possess legal value.
Keywords
Cryptocurrencies
Legal value (Māliyyat)
Digital currencies
Imam Khomeini
Cryptographic currencies
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