CRYPTOCURRENCY, TAX
IMPOSITION AND SHARIA FINANCE IN INDONESIA: A SYSTEMATIC LITERATURE REVIEW
Shilfa Ayu, Lela Nurlaela Wati
STIE
Muhammadiyah Jakarta, Indonesia
Email: [email protected],
[email protected]
|
KEYWORDS Sharia FinTech, Cryptocurrencies, Tax
Regulations, Sharia Finance |
ABSTRACT The purpose of this paper is to review the
findings of a review of the academic literature on Islamic financial
technology that has been carried out in the field of Islamic financial
technology. The aspects studied in Islamic Finance Fintech with cryptocurrency
regulations, compliance and tax policy laws and finally identify other
influences such as opportunities and Islamic financial technology that
Islamic financial institutions can learn from global fintechs
around the world. This study collected 150 journals. Based on the inclusion
and exclusion criteria, 79 research papers and publications were used in this
systematic literature review. This paper offers a thorough analysis of the
study. This study classifies Islamic Financial Technology with regulation/compliance
in Islamic law and taxation. Throughout our review, we also found barriers to
cryptocurrencies in Islamic law and found several countries have tax policies
for cryptocurrencies. This study will greatly advance the understanding of
Islamic FinTech among academics, companies, regulators, investors, and other
FinTech users. The results of this study are expected to be useful in
understanding Fintech (cryptocurrency-based technology) from the point of
view of sharia and taxation rules in Indonesia |
INTRODUCTION
The development of the
world in the 4.0 era can be seen that rapidly developing technology has brought
the world in new directions in almost every aspect of human life, including
economic activities. One of the economic developments we have seen in the past,
people who transact business using only ordinary currency, are now turning to
fintech/digitalization. The banking sector, government, stakeholders, and
individual investors are all interested in blockchain technology as it relates
to the use of cryptocurrencies. Due to the recent significant price growth,
Bitcoin is just starting to gain traction worldwide, especially in Indonesia.
Bitcoin and other top cryptocurrencies have received a lot of attention over
the past few years. Known globally as cryptocurrency and virtual currency, (Fauzi et al., 2020) .
This
phenomenon occurs virtual currency can interfere with the authority of the
central bank. Bank Indonesia admits the presence of Bitcoin and other digital
assets can disrupt the stability of the national financial system. This is due
to the tendency of prices to explode due to expectations and future demand so
that there is a high risk of price volatility. In addition, the Bitcoin
creation process is considered redundant, both in face value and deal value,
especially in light of the economic crisis.
The
Indonesian government through the Commodity Futures Trading Regulatory Agency (CoFTRA) plans to impose a tax on cryptocurrencies. This
news has circulated internationally and has drawn attention to how it plans to
tax this decentralized asset. CoFTRA is rumored to be
implementing a tax for all crypto transactions that occur in Indonesia. The tax
enforcement is rumored to be happening on crypto trading that occurs through
crypto exchanges that are legally and officially registered in Indonesia.
Fatwa issued
by the Indonesian Ulema Council (MUI) regarding crypto assets assessed using
the Analytical Hierarchy Process (AHP) method. Institutions that regulate the
crypto asset trading ecosystem include Crypto Asset Exchange, Futures Clearing,
Custodian, depository bank, and Crypto Asset Committee. as a currency, it is
believed that it will not reduce the interest of the Indonesian people to
invest in this instrument. President Commissioner of PT HFX International
Futures, Sutopo Widodo explained that the MUI fatwa
on cryptocurrencies is legal and must be respected because it has its own
foundation and views. He said the impact of this fatwa on the crypto industry
in Indonesia would not be significant. This is because cryptocurrency is a
global asset product that has spread all over the world.
The
government issued 14 derivative regulations in the form of a Minister of
Finance Regulation (PMK) to implement the provisions of Law Number 7 of 2021
concerning Harmonization of Tax Regulations (UU HPP). In its publications, the
government seeks to formulate balanced policies to support national economic
recovery. The issuance of this PMK is expected to make it easier for taxpayers
to understand and carry out the mandate related to policies in the HPP Law.
There are provisions that need to be considered in regulating crypto assets,
namely not all crypto assets can be traded and must be determined in advance by
the Head of CoFTRA by taking into account the
criteria and results of the assessment using the Analytical Hierarchy Process
(AHP). method. Institutions that regulate the crypto asset trading ecosystem
including Crypto Asset Exchange,
Under the
existing self-assessment system, Indonesian taxpayers continue to file,
determine and pay their own taxes. Of course, cryptocurrency users must also
comply with this, even if they do so using a different
form of tax return. After calculation, form 1770 S is used to record bitcoin
income or profit (Disemadi & Delvin, 2021)
High public
interest in cryptocurrency investments creates tax risks. Therefore, it is very
important to have laws or regulations in place to anticipate and stop this from
happening. Several countries, including the US, Japan, European Union, Russia,
Singapore, Australia, and Canada, have started taxing bitcoin (Harjo et al., 2021) . Depending on
the laws of each country, different countries have different tax policies for
cryptocurrencies. According to the Director of Extension, Services, and Public
Relations of the Directorate General of Taxes, bitcoin profits are taxable
income.
(Samputra & Putra, 2020) Although it is recognized that it has various benefits, the
legality and regulation of cryptocurrencies in Indonesia is still questionable,
especially considering the potential conflict with Islamic law. (El Islamy, 2021) It is
interesting to note that according to the Libra Whitepaper, �assets in the
Libra Reserve will be held by a network of geographically dispersed custodians
with investment grade credit ratings to offer asset protection and
decentralization. Interest on the reserve assets will be used to cover costs.
system. , guarantees low transaction costs, and
promotes future expansion and dependability. The Libra Association will be
responsible for formulating the rules for distributing reserve shares. For
Libra users, there is no option of recovering from reserves. This can make it
difficult for investors to participate if their country follows Sharia law or
if they decide to control the use of their money.
It is
interesting to note that it has been suggested that cryptocurrencies are
commodities in the US under the terms of the SAFT and therefore subject to CFTC
regulations. (Concannon, Valdez, & Wink, 2018) . Since Bitcoin was
not created by a monetary authority and has no legal force to be used and
accepted as money, the Chinese government went so far as to say that it cannot
be considered money. The strategy of classifying Bitcoin as a commodity has
also been adopted by the US Commodity Futures Trading Commission (Profit, 2019) .
(Rafiki & Nasution, 2021)
Many industries, including the financial sector, have been
affected by technology and automation. The expansion of the Islamic finance industry
has been driven by the use of financial technology (FinTech). This discovery
provides society with many financial benefits and solutions. Indonesia, a
Muslim-majority country, is experiencing positive growth in this new
innovation. The development of Sharia FinTech can present obstacles in addition
to its competitive advantage, so strong regulations must be developed,
especially those related to Sharia compliance issues (Hasan, Hassan, & Aliyu, 2020; Muneeza
& Mustapha, 2020)
Therefore, we conducted this study to evaluate the possible
implementation of Fintech in Islamic finance with cryptocurrency regulation,
compliance, and tax laws. We provide a systematic review of the related
literature to explore the problems facing Islamic fintech and contribute by
proposing research objectives that can enhance the integration of fintech and Islamic
finance.
METHOD RESEARCH
(Kuncoro, 2018) revealed that SLR is the process of identifying, evaluating, and
analyzing all available information to answer predetermined research questions.
The target of
this research is Sharia Fintech. Why Islamic Fintech is the target of research,
because Islamic Finance Fintech with cryptocurrency regulations, compliance and
tax laws and finally identifies other influences such as opportunities and
Islamic financial technology that Islamic financial institutions can take from
international fintech.
The information cited
as supporting in this study is purely complementary (secondary data). Through
various steps, additional data for this exam is collected, especially the
details about the factors used are taken from the website of the authority.
Tracking information in the field to collect data to be used for further
exploration purposes is known as information sorting. Sources that do not
directly offer information to information authorities, such as through
individuals or other reports, are considered optional sources of information (Kuncoro, 2018; Wati, 2021) .
RESULTS AND DISCUSSION
Results
of the Search Process and Inclusion and Exclusion Criteria
Only 150 journal
papers that meet the requirements for journal papers published for the period
2017-2022 and having discussions on Cryptocurrencies, Tax Imposition and
Islamic Finance were selected from the results of the search method and
inclusion and exclusion criteria. Table 2 below shows this:
Table 1
Study Search Results
|
Not. |
Information |
Finding |
|
1 |
Preliminary study found in 2017-2022 |
150 |
|
2 |
Relevant studies based on inclusion and exclusion criteria |
79 |
|
3 |
The study did not find the full text |
2 |
|
4 |
Studies that meet the quality of the assessment |
20 |
Source: Processed Data, 2022
Islamic FinTech Opportunities and Obstacles
In Muslim-majority
countries, Islamic banking, particularly Islamic FinTech, has a very bright
future. The emergence of FinTech in these countries is made possible by the
emergence of mobile phones and smartphones. The law and the lack of reliable
and high-quality research in the field of Islamic Fintech are the main
challenges for organizations providing services in this sector. (Ahmed et al., 2019) . According to
different research (Firmansyah & Ramdani, 2018) ,
the existence of Sharia Fintech companies can significantly help entrepreneurs.
Young graduates will benefit because there are not many companies that provide
Islamic financing for prospective graduates. Islamic FinTech, which is based on
Shariah values and principles, has the power to completely change the world of
finance. The openness, use and transparency of Islamic Fintech are its main
advantages. (Zaka & Shaykh, 2019) .
Financial performance
was not affected by the global financial crisis. Islamic banks have become a
viable alternative to traditional financing due to the nature of Islamic
finance. Islamic banks now have the opportunity to improve the financial system
and establish themselves as a more ethical and transparent financial
alternative thanks to the development of Sharia FinTech. (Yavuz DEMİRD�ĞEN, 2021) . Innovation in
the financial and banking sectors has just begun due to technological transformation (Arize et al., 2018) . For Islamic
finance organizations, preparation for and acceptance of change is critical. In
the next three years, Sharia FinTech can attract 150 million new customers (Chen, 2018)
According to research (Michalopoulos & Tsermenidis, 2018)
The absence of educated human resources and clear government
regulations are the main obstacles to the development of Sharia FinTech.
According to additional research, the Government of the country should build a
favorable environment for the growth of Islamic FinTech so that educational
institutions should conduct quality research and employ qualified staff
according to the appropriate regulations. Success in Islamic Fintech can be
attributed to a wide range of financial services, including cryptocurrencies,
blockchain technology, and other sectors including cross-border payments.
Islamic FinTech must
remain alert to the rapid changes taking place in the ordinary monetary sphere.
Since the principle of FinTech is normal capital according to the guidelines
characterized by Sharia, Islamic money ability is really more important than
traditional finance. Sharia FinTech relies on the same ethics and standards as
Islamic money. Islamic financial technology must keep pace with the rapid
changes taking place in the conventional financial sector. Since the basic idea
of FinTech is joint capital according to sharia regulations, the opportunities
for Islamic finance are really bigger than traditional finance. Sharia FinTech
adheres to the same morals and principles as Islamic Finance (Haqqi, 2018) .
Islamic FinTech has to
keep up with the fast changes taking place in traditional finance. Since the
basic idea of FinTech is mutual capital according to the standards set by
sharia, the potential of Islamic finance really is greater than the
opportunities of traditional finance. Sharia FinTech has the same moral
principles and behavioral principles as Islamic Finance. The emergence of
Islamic Fintech offers tremendous potential for developing countries because it
offers a cheap alternative to financial services. To ensure Islamic FinTech
grows and develops sustainably, students can start awareness campaigns among
people who use technology. Sharia has an impact on the global financial system
as well as non-Muslim communities and Muslim societies.
Table 2
Islamic FinTech Opportunities and Obstacles
|
Opportunity |
Obstacle |
|
New startups can benefit greatly
from Islamic fintech companies and Islamic FinTech companies can provide a
wide range of cutting-edge products and services. |
Lack of available human resources
for Sharia FinTech development and clear government policies due to lack of
solid and reliable research in Sharia Fintech field. |
|
It gives users the option of using
both conventional and cutting-edge financial services. It can offer
affordable options for financial services and will give existing Islamic
banks the opportunity to go digital and offer affordable financial services. |
Qualified academic and
professional researchers must provide high-quality research, and educational
intuition must do the same. It can offer affordable options for financial
services and will give existing Islamic banks the opportunity to go digital
and offer affordable financial services. Islamic FinTech Islamic FinTech must
be in balance with the rapid changes taking place in traditional finance. |
|
Sharia fintech can quickly gain
customer trust because it is open, easy to use, and accessible. It can be
related to Blockchain, cryptocurrencies and other topics such as
international payments due to compliance with Islamic sharia law. |
Islamic financial technology must
ensure stability and protect investors and institutions from dishonest
trading practices. As technology increases transparency, banks are vulnerable
on all fronts. Investors are unsure about the value of Islamic FinTech as it
is still in its infancy. |
Source: Processed Data, 2022
Sharia
Finance Regulations and Fintech Challenges
Both investors and
users benefit greatly from fintech. Due to the continuous evolution of
competition from FinTech startups, service providers are forced to adopt a
customer-centric strategy. As the Fintech sector evolves, investors and
regulators must find ways to safeguard their interests as investors and
consumers. Thanks to innovations in fintech, consumers are benefiting from new
and creative financial services, while traditional financial services are
becoming more competitive and available (El Islamy, 2021; Kirchner, 2020; Mohd Nor
et al., 2021) .
As FinTech advances
emerged across different eras, the need for greater regulation became apparent
during the global financial crisis. The emphasis is now on using technology to
deliver services rather than the product or service being delivered. To align
the advantages of new innovations with the dangers they pose is now a major
task for regulators and developers (Alam & Zameni, 2019; Muneeza &
Mustapha, 2020) .
If Fintech is not
properly regulated, its rapid rise may also be unsettling. Since FinTech is
still in its early stages of development and because of its impact on different
stakeholders it can only be fully understood by considering variables such as
regulation.
To balance FinTech
companies providing stability and access to financial services, regulatory
regimes require principles-based regulations (Teichmann & Falker, 2020) . Due to the decentralized structure of financial
services provided by FinTech businesses, it is very difficult to implement
consistent rules that combine all under one umbrella (Caton, 2020) . If we take a more lenient, liberal and ethical
approach to overseeing Fintech businesses, disruptive innovation has the
potential to improve people's lives.
Sharia FinTech
regulations are difficult to implement, therefore this sector has set goals for
standardization and development of Sharia FinTech rules (Harjo et al., 2021) . In addition to the rapid development of Sharia
FinTech, this also presents opportunities as well as threats for regulators and
policy makers. Policy makers and regulators should consider the adoption and
acceptance of Islamic FinTech by striking the right balance between the
benefits it offers and the concerns it poses in terms of greater risks as
sharia-based contracts are more complicated than ordinary financial contracts. (Kunhibava et al., 2021) .
In fact, the problems
of regulation of Islamic financial institutions have previously been resolved
with the development and adoption of FinTech. More transparency will result,
and FinTech regulators will profit from innovation (SP et al., 2022) . Banks, startups and FinTech companies are players in
the big FinTech industry. The majority of countries are still developing
regulatory frameworks that conflict with some existing laws. Islamic FinTech
can benefit from all this by offering a more acceptable regulatory approach to
stakeholders.
Table 4
Islamic law and financial technology
|
Increasing the regulation of Islamic FinTech through |
Regulatory threats to Islamic FinTech |
|
Externalities should be understood
as liability for failure due to financial market failures. |
Financial regulators who had to
regulate financial companies after the financial crisis faced a difficult
task |
|
Laws are made by governments and
regulatory organizations that include regulatory expenditures as internal
costs. To effectively control the Fintech business, regulations must be
loose, permissive and based on principles. |
The regulation strikes a balance
between the benefits offered and the disadvantages of increased risk. The regulatory
structure is under development and conflicts with some existing regulations. |
Source: various research sources
Sharia
law and cryptocurrency legitimacy
Cryptocurrencies are
viewed differently by different Islamic scholars; some believe it is
permissible (halal) while others believe it is forbidden (haram). Point of
view, which classifies cryptocurrencies into permitted groups and explains the
principles (Abubakar et al., 2019; Fageh & Iman,
2021) . An Islamic model and
system for digital currencies is clearly needed, as there is a problem with
using cryptocurrencies for any type of transaction that would violate Islamic
law. There are arguments why cryptocurrencies should not enter the market,
including constitutional violations and implementation uncertainties that have
been highlighted by many fatwas and researchers.
Paper money has
several recognized weaknesses, including inflation, government abuse, unlimited
supply, and currency counterfeiting. If we take this into account, it means
that paper currency is not the best form of exchange and is incompatible with
Sharia law, which is used in Islamic banking and finance.
Bitcoin, on the other
hand, has greater dependability, transparency, decentralization, limited
numbers, and very low probability of hacking (forgery and abuse). Certain
academics agree that while some countries are integrated into the global
economy, others are not, and that cryptocurrencies and blockchain technology
can help close this gap. bridge this gap, give them autonomy over their own
resources, and ensure the security of their wealth by removing them from
centralized control (Siswantoro et al., 2020)
According to a 2018
study by Oziev on the Shariah perspective of
cryptocurrencies, payment methods such as currency exchange and the purchase of
goods and services can all be considered acceptable uses for cryptocurrencies
such as Bitcoin. However, it is forbidden to buy cryptocurrencies for
investment or accumulation purposes due to the high level of volatility in
their exchange rates. according to Oziev (Gapur Oziev and Magomet Yandiev, 2018) , How to get
digital money is also a significant point of view in concluding whether digital
currency obtained for the purpose of paying installments for labor and products
is permissible, though, assuming that cryptographic money has been mined for
capacity and excavators. Having the intention to do so yields excellent results
from this point on, where it is prohibited as it is purely speculative and
involves undue risk. (Alam et al., 2019) examined
that digital currencies can be allowed and, surprisingly, enforced by
legislatures if they can beat the negative angle. For example, if a digital
currency can provide a conversion scale security guarantee, guarantee or
guarantee against the misuse of cryptographic money, for example, used in
fraudulent practices and activities under Shariah and Finance guidelines, it
will most likely be recognized as a digital currency. Islamic currency.
Table 3
Permitted and prohibited aspects of shariah-compliant
cryptocurrencies
|
Allowed |
Not allowed |
|
Cryptocurrencies are permitted
based on their general nature and principles. Allowed in some situations,
such as when exchanging currency or paying for services or commodities. |
Not allowed due to constitutional
violations and implementation uncertainty surrounding cryptocurrencies. It is
forbidden to buy it with the intent to accumulate or invest in it. |
Source: various research sources
Cryptocurrency
Tax Withdrawal Potential
Cryptocurrencies
themselves have a smaller VAT increase potential than income taxes. This is
important because many of the requirements for applying VAT in business
operations involving cryptocurrencies have not been met. Although
cryptocurrency is understood as a taxable item during the mining process, it
cannot be used. This is important because it is difficult to determine who is
participating in the transaction because bitcoins are encrypted (Ilham, 2020; Khandelwal, 2019) .
The investment
business process also goes through the events mentioned above. Investment
activities through cryptocurrencies are clearly outside business activities,
therefore investors cannot be considered as Taxable Entrepreneurs, so investors
cannot be subject to VAT. However, it is possible that a business entity with
operational cryptocurrency trading activity is in the foreground. VAT can be
used in these circumstances. The chances of something happening still seemed
very slim. The exchange business process has a good chance of success.
Exchangers must be confirmed as PKP if their turnover exceeds a certain
threshold because the services they provide, such as transfers and withdrawals
of deposits, cannot be classified as financial services. (Maulani, 2021; Retno Mawarini Sukmariningsih, Agus Nurudin, 2022)
VAT on bitcoin sales
may apply to exchangers. If the purchase transaction from another exchange has
been verified as a PKP, the exchanger may also be subject to additional VAT.
Trade is the last commercial activity that has the potential to cause
additional VAT for Indonesia. Retailers who have exceeded the predetermined
minimum turnover threshold and have been verified as PKP. Therefore, the sale
of goods or services rendered constitutes the delivery of taxable goods or
taxable services. Because the buyer has not been verified as a PKP, the VAT is
directly levied on the merchant.
Tax
Avoidance Policy in Cryptocurrencies
Three ways highlight
policy proposals to address the issue of imposing tax collections on bitcoin
transactions as a source of new economic growth in Indonesia. First, the Self Assessment System must be optimized to collect Income
Tax (PPh) from cryptocurrency transactions in
Indonesia. Due to the lack of cryptocurrency taxation restrictions in laws and
regulations, Indonesian taxation automatically assigns the use of bitcoin by
its citizens to one of the following tax collection arrangements: Income Tax
Law (UU PPh), Taxpayers must complete an SPT at the
end of the tax period as evidence timely tax reporting. This can be analogous
to taxpayers who use cryptocurrency who report additional income in the SPT in
this case because cryptocurrency capital gains are included in additional
economic capacity as described in Article 4 Paragraph (1) of the Income Tax
Law. The lack of tax laws that regulate the collection of PPh
on cryptocurrency transactions in Indonesia will be very unfortunate when
considering the potential for cryptocurrency taxes in Indonesia. (Retno Mawarini Sukmariningsih, Agus
Nurudin, 2022) .
Second, law
enforcement is also needed. Income tax payments are made in advance for
Indonesian cryptocurrency transactions. To prevent taxpayers from violating tax
regulations and to make taxpayers more orderly and obedient in paying taxes on
time, this problem can be solved by carrying out good supervision by the
Directorate General of Taxes.
Third, Indonesia needs
to enforce income tax payments on bitcoin transactions. Both criminal sanctions
and administrative sanctions are part of repressive law enforcement. The
administration of sanctions to the taxpayer is carried out by imposing a fine
if the taxpayer is late in reporting the SPT. Taxpayers can also be subject to
sanctions in the form of increases if the Taxpayer fills out dishonestly and
correctly in relation to the income on cryptocurrency that has been obtained.
If a taxpayer breaks
the law or commits a crime, they can face imprisonment or other forms of
punishment. Directorate As a bitcoin investor, the Tax General can initiate a
thorough investigation of the Taxpayer. Profit in the range of IDR 50 million
and above. The reason is, Article 17 of the Income Tax Law states, starting
from income above IDR 50 million, income that is considered as personal gain is
subject to a 5 percent tax. As taxpayers receive many benefits from
cryptocurrency transactions, they are becoming increasingly scarce.
However, as mentioned
in the section above, the potential for adding VAT through cryptocurrency alone
is not as big as PPh. In the process of exchange and
trading companies, there is considerable earning potential. Therefore, it is
important to prioritize the awareness of perpetrators in order to obtain VAT on
bitcoin transactions. When a business activity meets the requirements for PKP
status, the perpetrator must try harder to maintain that status so that traders
can collect VAT for some transactions.
(Barth, 2019; sangadah & Kartawidjaja, 2020) exemplifies One of the most crucial aspects is the issue of taxation.
How to classify cryptocurrencies for tax purposes is a problem. For tax
purposes, cryptocurrencies are classified in various ways by several countries.
For example,
cryptocurrencies are taxed as assets, financial assets, and foreign currencies
in Israel, Bulgaria, and Switzerland. Cryptocurrencies are taxed as income in
Argentina, Spain and Denmark. In addition, businesses pay corporate taxes.
While in the UK, the value added tax is not applied to bitcoin investment
profits. The tax status of cryptocurrencies in some countries is shown in the
table below:
Table 4
Cryptocurrency tax status in some countries
|
Country |
Tax Status |
|
China |
The Chinese government stated in
2017 that cryptocurrencies were not accepted as a genuine form of payment and
that initial coin offerings were previously banned in China. |
|
english (english) |
In the UK, cryptocurrencies are
not considered legal cash and are not subject to any special regulations.
Cryptocurrencies are considered assets in the UK if they are held for
investment purposes, and any income is subject to capital gains tax. People
who trade cryptocurrencies are taxed as income on their profits. Profit or
loss on cryptocurrency for business |
|
Russia |
The Russian Ministry of Finance
explained that they are working on a law to manage cryptocurrency
transactions without completely banning them in early 2018. Through this law,
it is possible to tax cryptocurrency transactions to support the state
budget. Cryptocurrency transactions were initially banned in Russia in 2015. |
|
USA (United States of America) |
In the US, cryptocurrencies are
not recognized as legal cash. In addition, they are considered property for
US federal taxation. The same tax principles that apply to real estate
purchases also apply to transactions involving cryptocurrencies. Employees
who receive payments in cryptocurrency are liable for federal and state
payroll taxes and withholding income taxes. Payments made in cryptocurrency
to independent contractors and other service providers are subject to taxes
and laws, and entrepreneurship taxes may apply. If a cryptocurrency payment
is made, it must be reported. |
Source: (Barth, 2019; Retno Mawarini Sukmariningsih, Agus Nurudin, 2022)
It is clear that each
country has different policies regarding cryptocurrency taxation this has to do
with how each country views cryptocurrencies and digital assets. The summary
above shows that there is no international agreement on the legitimacy of
cryptocurrencies. In addition, there is no agreement on the laws and practices
governing bitcoin taxation
CONCLUSION
This study led an extensive survey of various objective variables
of Financial Technology such as Blockchain, Cryptocurrencies in Islamic
Finance. The Islamic Fintech opportunity is tremendous in the Islamic world and
among administrative clients, Muslim money because it provides an open door for
development and can offer any type of monetary assistance at a reasonable cost.
Utilization of FinTech in Islamic Finance or Islamic FinTech presents many
difficulties when investigating many open doors. Islamic FinTech can give a
boost to new companies because it is easy, open and easy to use and can earn
clients' trust simply which is very important for new businesses. FinTech
arrangements are smarter in offering this type of monetary assistance as
compared to regular money and banking. Islamic FinTech will emerge as a hero
for Islamic Finance and Banking foundations as a result of its continued costs
and efforts to society. Islamic FinTech can easily gain the trust of both
Muslim and non-Muslim community groups largely because of its directness.
However, in addition to the extraordinary open doors, there are also major
difficulties, such as the absence of a good and real exploration in Islamic
FinTech, the absence of ready staff, the separation of differences in the
consistency of government and Sharia, digital attacks and the certainty of
financial backers. because Islamic FinTech is still in its early stages. System
administration is another important area for Islamic FinTech that must be
managed and overcome shortcomings.
and also From the description above, legal
regulations regarding the existence of digital assets and digital currencies
are required. From these rules, the provisions of the tax law are formulated so
that the provisions of the Income Tax law on transactions for one of the crypto
assets, namely cryptocurrency in Indonesia, can be obtained. The legitimacy of
digital money in Indonesia has been embodied in the CoFTRA
Regulation and has made it a profitable business instrument. Crypto resources
on venture grounds will provide additional capital where the exchange is
profitable?
may be available. Moreover, the absence of task rules related to
digital money exchange is a current question so this research takes a deeper
look. What is the potential income that can be obtained from this crypto
resource.
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