A Juridical Investigation of Mining and Exchanging Crypto-currency, Focusing on the Bitcoin Network

The popularity of the concept of crypto-currency in today's economy has raised many juridical questions. Using an analytical-juridical method, this paper analyzes the activities performed in the process of mining and exchanging of these currencies, with a focus on Bitcoin network. Based on the research findings, juridically, the trading of crypto-currency is permissible if the general conditions of commercial transactions are met. The crypto-currency ownership can be justified on the grounds of an effort for decoding and possessing the receiving rewards from the network. Observing the conditions of the contractors, considerations, and the creation of possession through sale by conduct in these currencies is possible. Some objections rose against crypto-currency trading, including Bitcoin, money laundering, creating a currency bubble, devaluation of national currency, obtaining property through illegitimate and illegal means, and the possibility of being deceitful or harmful, cannot be the basis for the illegality of the trade of crypto-currency. However, using crypto-currency faces challenges such as consumption of government electricity, partnerships with miners the incapacitated individuals in mining pools. The religious ruler may limit or prohibit the extraction and sale of such goods by issuing a government order, with the adverse effects of currency development on the market and possible economic, moral and security corruption. Sharia ruler can restrict or prohibit mining crypto-currency trade in case of negative effects of crypto-currency in the market, or in case of economic, moral or security problems.