ISSN: 2225-8329
Open access
The rapid rise of Non-Fungible Token (NFT) games has revolutionized the gaming industry by integrating blockchain technology and cryptocurrency, enabling players to generate income through in-game transactions. However, these developments have raised significant concerns regarding their compliance with Shariah principles, particularly in the context of Islamic finance and ethical gaming practices. This study aims to critically examine the Shariah compliance and ethical issues associated with NFT games, focusing on transaction practices, the use of cryptocurrency, and market risks. Employing a qualitative research approach, this study utilizes content analysis to explore the mechanics of NFT games, their financial implications, and their alignment with Islamic jurisprudence. The findings reveal several key Shariah issues, including the presence of gambling elements, the use of cryptocurrencies and NFTs with unclear Shariah status, unfair practices that favour wealthier players, the potential use of in-game items for money laundering, addiction risks, and the extreme volatility of in-game item prices. These issues highlight the challenges of ensuring fairness, transparency, and ethical conduct in NFT game transactions, which are fundamental principles in Islamic finance. Furthermore, the speculative nature of cryptocurrency and the lack of regulatory oversight exacerbate these concerns, making it difficult to establish clear Shariah-compliant guidelines. The findings provide a foundation for establishing Sharia-compliant guidelines for NFT game transactions, assisting players and fatwa institutions in addressing these challenges and ensuring adherence to Islamic principles.
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