Ṣukūk on blockchain: a legal, regulatory and Sharī’ah review

IF 2.8 Q2 BUSINESS, FINANCE
S. Kunhibava, Zakariya Mustapha, Aishath Muneeza, A. Sa’ad, M. Karim
{"title":"Ṣukūk on blockchain: a legal, regulatory and Sharī’ah review","authors":"S. Kunhibava, Zakariya Mustapha, Aishath Muneeza, A. Sa’ad, M. Karim","doi":"10.1108/IJIF-06-2020-0120","DOIUrl":null,"url":null,"abstract":"\nPurpose\nThis paper aims to explore issues arising from ṣukūk (Islamic bonds) on blockchain, including Sharīʾah (Islamic law) and legal matters.\n\n\nDesign/methodology/approach\nA qualitative methodology is used in conducting this research where relevant literature on ṣukūk was reviewed. Through a doctrinal approach, the paper presents analyses on the practice of ṣukūk and ṣukūk on blockchain by discussing its legal, Sharīʾah and regulatory issues. This culminates in a conceptual analysis of blockchain ṣukūk and its peculiar challenges.\n\n\nFindings\nThis paper reveals that digitizing ṣukūk issuance through blockchain remedies certain inefficiencies associated with ṣukūk transactions. Indeed, structuring ṣukūk on a blockchain platform can increase transparency of underlying ṣukūk assets and cash flows in addition to reducing costs and the number of intermediaries in ṣukūk transactions. The paper likewise brings to light legal, regulatory, Sharīʾah and cyber risks associated with ṣukūk on blockchain that confront investors, practitioners and regulators. This calls for deeper collaboration in research among Sharīʾah scholars, lawyers, regulators and information technology experts.\n\n\nResearch limitations/implications\nAs a pioneering subject, the paper notes the prospects of blockchain ṣukūk and the current dearth of literature on it. The paper would assist relevant Islamic capital market entities and authorities to determine the potential and impact of blockchain ṣukūk in their respective businesses and the financial system.\n\n\nPractical implications\nBlockchain ṣukūk will assist in addressing issues inherent in classical ṣukūk and in paving the way to innovative solutions that will facilitate and enhance the quality of ṣukūk transactions. For that, ṣukūk would require appropriate regulatory technology to address its governance and regulation peculiarities.\n\n\nOriginality/value\nIntegrating ṣukūk with blockchain technology will add value to it. The paper advances the idea that blockchain ṣukūk revolutionises ṣukūk and enhances its practice against known inadequacies.\n","PeriodicalId":54072,"journal":{"name":"ISRA International Journal of Islamic Finance","volume":" ","pages":""},"PeriodicalIF":2.8000,"publicationDate":"2021-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"17","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ISRA International Journal of Islamic Finance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/IJIF-06-2020-0120","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 17

Abstract

Purpose This paper aims to explore issues arising from ṣukūk (Islamic bonds) on blockchain, including Sharīʾah (Islamic law) and legal matters. Design/methodology/approach A qualitative methodology is used in conducting this research where relevant literature on ṣukūk was reviewed. Through a doctrinal approach, the paper presents analyses on the practice of ṣukūk and ṣukūk on blockchain by discussing its legal, Sharīʾah and regulatory issues. This culminates in a conceptual analysis of blockchain ṣukūk and its peculiar challenges. Findings This paper reveals that digitizing ṣukūk issuance through blockchain remedies certain inefficiencies associated with ṣukūk transactions. Indeed, structuring ṣukūk on a blockchain platform can increase transparency of underlying ṣukūk assets and cash flows in addition to reducing costs and the number of intermediaries in ṣukūk transactions. The paper likewise brings to light legal, regulatory, Sharīʾah and cyber risks associated with ṣukūk on blockchain that confront investors, practitioners and regulators. This calls for deeper collaboration in research among Sharīʾah scholars, lawyers, regulators and information technology experts. Research limitations/implications As a pioneering subject, the paper notes the prospects of blockchain ṣukūk and the current dearth of literature on it. The paper would assist relevant Islamic capital market entities and authorities to determine the potential and impact of blockchain ṣukūk in their respective businesses and the financial system. Practical implications Blockchain ṣukūk will assist in addressing issues inherent in classical ṣukūk and in paving the way to innovative solutions that will facilitate and enhance the quality of ṣukūk transactions. For that, ṣukūk would require appropriate regulatory technology to address its governance and regulation peculiarities. Originality/value Integrating ṣukūk with blockchain technology will add value to it. The paper advances the idea that blockchain ṣukūk revolutionises ṣukūk and enhances its practice against known inadequacies.
Ṣukūk在区块链:法律,监管和shari ' ah审查
本文旨在探讨区块链上ṣukūk(伊斯兰债券)产生的问题,包括伊斯兰教法和法律问题。设计/方法/方法在进行本研究时使用了定性方法,并对ṣukūk的相关文献进行了审查。本文从理论的角度分析了ṣukūk和ṣukūk在区块链上的实践,讨论了其法律、教法和监管问题。最后是对区块链ṣukūk及其特有挑战的概念分析。本文揭示了通过b区块链数字化ṣukūk发行可以弥补与ṣukūk交易相关的某些低效率。事实上,在区块链平台上构建ṣukūk可以增加潜在ṣukūk资产和现金流的透明度,此外还可以减少ṣukūk交易中的成本和中介机构数量。该文件还揭示了投资者、从业人员和监管机构在b区块链上面临的与ṣukūk相关的法律、监管、伊斯兰教法和网络风险。这就要求经学学者、律师、监管机构和信息技术专家在研究方面进行更深入的合作。作为一个开创性的课题,本文注意到区块链ṣukūk的前景和目前文献的缺乏。该文件将帮助相关的伊斯兰资本市场实体和当局确定区块链ṣukūk在各自业务和金融体系中的潜力和影响。实际意义区块链ṣukūk将有助于解决经典ṣukūk固有的问题,并为创新解决方案铺平道路,从而促进和提高ṣukūk交易的质量。为此,ṣukūk将需要适当的监管技术来解决其治理和监管的特殊性。独创性/价值将ṣukūk与区块链技术相结合将为其增加价值。本文提出区块链ṣukūk革新ṣukūk的想法,并针对已知的不足加强其实践。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
3.40
自引率
17.40%
发文量
18
审稿时长
20 weeks
期刊介绍: It is the aspiration of the editorial committee that IJIF achieves the highest rank in quality and substance. It is thus our aim that the journal be carried in the Thompson Reuters’ ISI and Scopus databases. By ensuring high standards in articles published in Islamic finance we ensure that further innovation and research is carried out and promoted in the Islamic finance industry and academia. IJIF publishes 2 issues per annum.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信