Reconstructing the Legal Manhaj al-Fatwa for Global Islamic Financial Technology Governance

Abstract

The accelerating development of global financial technologies, such as financial technology (fintech), artificial intelligence (AI), blockchain, cryptocurrencies, digital banking systems, and smart contracts, has significantly reshaped the contemporary Islamic finance ecosystem. These technological innovations have introduced increasingly sophisticated digital financial products and transaction models that challenge the capacity of conventional fatwa methodologies to provide effective and timely legal guidance. This study investigates the necessity of reconstructing the legal manhaj al-fatwa to support the governance of global Islamic financial technology while proposing a more responsive, adaptive, and maqāṣid-based framework for Islamic legal reasoning in the digital era. Using a qualitative library research approach, the study analyzes fatwas issued by the Indonesian National Sharia Council (DSN-MUI), relevant financial regulations, contemporary Islamic legal scholarship, and recent academic literature on Islamic fintech governance. The findings demonstrate that technological disruption has generated a range of emerging legal concerns, including the Shariah status of crypto-assets, transparency and accountability of AI-based financial algorithms, consumer data protection, cybersecurity risks, automated contractual arrangements, and cross-border digital financial transactions. The study further reveals that traditional fatwa approaches, which often rely on textual interpretation and reactive legal responses, are increasingly inadequate for addressing the complexity and dynamic nature of modern digital finance. Consequently, the reconstruction of the legal manhaj al-fatwa should incorporate the principles of maqāṣid al-sharīʿah, fiqh al-wāqiʿ, and maṣlaḥah mursalah, supported by interdisciplinary collaboration among Islamic scholars, technology specialists, regulators, and industry stakeholders. Such an approach is crucial for maintaining the relevance of Islamic legal authority, enhancing consumer protection, fostering regulatory adaptability, and promoting a fair, inclusive, and sustainable system of global Islamic financial technology governance.