The Jurisprudential and Legal Validity of Cryptocurrency Mining and Transfer in the Iranian Legal System

Abstract

The emergence of cryptocurrencies as a novel phenomenon in the fields of finance and technology has presented legal and jurisprudential systems with numerous challenges. Using a descriptive-analytical method and library-based sources, the present study aims to elucidate the jurisprudential and legal foundations governing cryptocurrency mining and transfer within the Iranian legal system. The findings indicate that, from the perspective of Islamic jurisprudence, cryptocurrencies possess customary proprietary value, provided that the three conditions of property status—recognition and demand among rational persons, rational utility, and relative scarcity—are satisfied; consequently, they fall within the scope of the principle of respect for property. The principles of no harm, the negation of domination, and the prohibition of uncertainty, when applied through an intelligent regulatory approach, do not constitute grounds for the absolute religious prohibition of such activities. Moreover, cryptocurrency mining may be legally and jurisprudentially justified on the basis of a juʿālah contract. From a legal perspective, cryptocurrencies may be classified as “intangible movable property” and “fungible property” and are therefore subject to the general rules of contracts and civil liability. The principal challenges in this field include determining the competent court, identifying the applicable law, and proving ownership. To address these challenges, the adoption of comprehensive legislation, the establishment of a specialized supervisory authority, and the development of international cooperation are recommended. The overall conclusion is that a balanced regulatory approach, rather than an absolute prohibition, can provide an appropriate framework for the legitimate and lawful utilization of the potential of cryptocurrencies in accordance with Islamic values and national interests.