Verification of the Ratio Legis "Tahqīq Al-Manāṭ" in Cryptocurrencies: Bitcoin as a Case Study 10.35781/1637-000-161-001

Abstract

Abstract: This research aims to highlight the impact of the appropriate application of Ratio Legis (Taḥqīq al-Manāṭ) regarding cryptocurrencies, taking Bitcoin as a case study. It focuses on a precise uṣūlī aspect, which involves tracing disputes back to their governing legal rules (qawāʿid) as a standard for adjudication in cases of disagreement, following a descriptive, inductive, and critical methodology. The findings of the research conclude that one of the most prominent reasons for the disagreement among scholars is their difference in the process of applying the appropriate Ratio Legis (Taḥqīq al-Manāṭ) for constructing a ruling. This difference stems either from the obscurity inherent in the case itself or from the fact that the sub-issue (farʿ) fluctuates between more than one uṣūlī rule. The research finds that the most disciplined rule for sound legal inference (istinbāṭ) in this context is the principle of blocking the means (sadd al-dharāʾiʿ), due to the preponderance of the harms (mafāsid) to which Bitcoin may lead. The research's conclusion regarding the ruling on dealing with Bitcoin is prohibition. This is an independent legal reasoning (ijtihād) and not an official fatwā; it is based on a variable rule, whereby the ruling changes if the benefits (maṣāliḥ) outweigh the harms. Among the most important factors influencing the ruling are: the Imam's (ruler's) authorization for its circulation—as issuing currency is one of his duties, and violating this entails discretionary punishment (taʿzīr)—and the presence of a central entity with legislative and executive authority to protect people's rights and wealth under government supervision and regulation. The study recommends addressing the underlying causes that led to the emergence of Bitcoin, while working on enacting laws and legislation to criminalize its use and limit its spread due to its potential harms. Furthermore, it suggests providing a suitable alternative that complies with Sharīʿah standards and achieves monetary efficiency. Keywords: Verification of the Manāṭ; Principles of Uṣūl al-Fiqh; Cryptocurrencies; Bitcoin; Legal Characterization