A Jurisprudential Feasibility Study on Classifying Cryptocurrency Mining as a Legally Foolish Act

Document Type : Original Article

Authors

1 دانشگاه شهید مطهری (ره) - تهران

2 دانشیار گروه فقه و حقوق خصوصی دانشگاه شهید مطهری

3 استادیار، گروه فقه و حقوق اسلامی، دانشکده الهیات و علوم اسلامی، دانشگاه تبریز

Abstract

Cryptocurrency mining is a new phenomenon in the global economy. Like other emerging issues, it must be examined in terms of its compatibility with Islamic legal standards to determine its legitimacy for individuals in an Islamic society. The growing public and governmental interest in mining and using cryptocurrencies in transactions makes it all the more necessary to address the topic. One major challenge regarding the legitimacy of mining operations is the view held by some jurists that it is foolish or irrational behavior, which would render the activity invalid. If so, any resulting gain for the miner would be deemed illegitimate and considered an instance of eating wealth wrongfully. Accordingly, the main question of this study is whether cryptocurrency mining can be considered a foolish legal act and thus impermissible. This study argues that general Ja‘ala (a type of unilateral contract promising compensation for completing a task) is the closest legal category applicable to mining operations. Using a descriptive-analytical method, the study concludes that the elements constituting foolishness—as cited by jurists and potentially applicable to Ja‘ala—such as "lack of rational benefit in the act" and "uncertainty about the compensation"—do not apply to mining operations. Furthermore, regardless of the legal classification of mining, when rational individuals around the world embrace and engage in a phenomenon on a large scale, such behavior cannot be deemed foolish. Therefore, arguing that mining is illegitimate based on claims of foolishness is not valid.

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References

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History

  • Receive Date: 29 February 2024
  • Revise Date: 01 January 2025
  • Accept Date: 14 April 2025

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