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14 Malaysian J. Syariah & L. 1 (2026)

handle is hein.journals/mlsnjl14 and id is 1 raw text is: 4.usn u rn(o r-/dh an Ian DOI: Vol. 14, No. 1, pp. 1-11 | APRIL 2026 ;//do orai0_33102/tmjsyvo1_4no1_1056 ISLAMIC LEGAL REASONING ON THE LEGITIMACY OF CRYPTOCURRENCY WITHIN THE FATWA OF NAHDLATUL ULAMA YOGYAKARTA: EXPLORING LEGALITY BEYOND BOUNDARIES l,*Muhammad Lutfi Hakim, iiSukron Ma'mun, iiiSaifuddin Herlambang, ivAhmad Muhibi, VAfriadi Putra & ViLandy Trisna Abdurrahman 'Faculty of Sharia, Institut Agama Islam Negeri Pontianak, Pontianak 78122, Indonesia Faculty of Sharia, Universitas Islam Negeri Salatiga, Salatiga 50721, Indonesia iiFaculty of Ushuluddin, Universitas Islam Negeri Syarif Hidayatullah, Jakarta 15412, Indonesia ivFaculty of Ushuluddin and Adab, Universitas Islam Negeri Sultan Maulana Hasanuddin, Banten 42171, Indonesia VFaculty of Ushuluddin, Universitas Islam Negeri Sultan Syarif Kasim, Riau 28293, Indonesia viSchool of Graduate Studies, Universitas Islam Negeri Sunan Kalijaga, Yogyakarta 55281, Indonesia *(Corresponding author) e-mail: muLhan naltfia ianpti kA Article history: Submission date: 3 November 2024 Received in revised form: 9 March 2025 Acceptance date: 13 October 2025 Available online: 6 April 2026 Keywords: Cryptocurrency, fatwa, ilhaqi method, Islamic legal reasoning, Nadhlatul ulama Funding: This article was supported by the Beasiswa Indonesia Bangkit of Lembaga Pengelola Dana Pendidikan (BIB-LPDP) under the Ministry of Religious Affairs of the Republic of Indonesia and the Lembaga Pengelola Dana Pendidikan (LPDP) under the Ministry of Finance of the Republic of Indonesia. Competing interest: The author(s) have declared that no competing interests exist. Cite as: Hakim, M. L., Ma'mun, S., Herlambang, S., Muhibi, A., Putra, A., & Abdurrahman, L. T. (2026). Islamic legal reasoning on the legitimacy of cryptocurrency within the fatwa of Nahdlatul Ulama Yogyakarta: Exploring legality beyond boundaries. Malaysian Journal of Syariah and Law, 14(1), 1-11. Ethic approvals: Ethical approval for this study was obtained from LBM PWNU DI Yogyakarta (No. 22/B01/LBM DIY/XI/2021). © The authors (2026). This is an Open Access article distributed under the terms of the Creative Commons Attribution (CC BY NC) !ocQj, which permits non-commercial re- use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact ABSTRACT The absence of a comprehensive state legal framework regulating cryptocurrencies has prompted responses from major Islamic organisations in Indonesia. The Majelis Ulama Indonesia (MUI) and Muhammadiyah have prohibited digital transactions through fatwas (legal opinions). However, while the Nahdlatul Ulama (NU) at the central level remains neutral, various regional Lembaga Bahtsul Masail (LBM) have issued conflicting fatwas. For instance, LBM NU Jawa Timur forbids cryptocurrency, whereas LBM NU Yogyakarta permits its use. This article provides an extensively analysis of the fatwa's content and the Islamic legal reasoning (istinbadt) supporting cryptocurrency's legitimacy. It adopts a socio-legal research approach, employing participant observation, in-depth interviews with key informants, and document analysis. Emphasising the procedural aspects of fatwa formulation by LBM NU Yogyakarta, the study highlights the use of the ilhaqi method (analogy) to validate cryptocurrency as both a medium of exchange and a commodity. This involves aligning cryptocurrency with established Islamic commercial principles in fiqh (Islamic jurisprudence) literature while acknowledging modern digital advancements. In formulating the fatwa, LBM NU Yogyakarta engaged executive councillors (musahih), religious leaders (kiais), NU management members, and consulted scholars and practitioners of blockchain technology and cryptocurrencies through discussions in the Bahtsul Masail forum. Despite differing legal arguments among participants that influenced thefatwa's formulation, it is argued that the decision primarily reflects the executive board's intent to reconcile Islamic law with modernity. By examining the internal dynamics offatwa production, this study contributes to global debates on Islamic legal authority, demonstrating how religious institutions reconstruct legitimacy and exercise interpretive power in response to emerging financial technologies in the digital age. 1 Mi