DIGITAL INHERITANCE (WASIYYAH) & CRYPTO: RECONCILING MUSLIM SUCCESSION LAW WITH VIRTUAL/DIGITAL ASSETS

AUTHOR – ADITYA MISHRA*, MD SAQIB ANSARI* & AKSHAT MISHRA*

* STUDENTS AT NATIONAL LAW INSTITUTE UNIVERSITY, BHOPAL

BEST CITATION – ADITYA MISHRA, MD SAQIB ANSARI & AKSHAT MISHRA, DIGITAL INHERITANCE (WASIYYAH) & CRYPTO: RECONCILING MUSLIM SUCCESSION LAW WITH VIRTUAL/DIGITAL ASSETS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (12) OF 2025, PG. 620-632, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

This research explores the complex intersection of Islamic inheritance law with digital asset succession, examining how traditional Muslim succession principles apply to cryptocurrencies, NFTs, and blockchain-based assets in contemporary legal contexts. The study establishes that private keys and digital assets constitute “Mal Mutaqawwim” (valued property) under Islamic jurisprudence, making them subject to Faraid distribution requirements and heritable under Muslim personal law. Key findings demonstrate that while blockchain technology’s decentralized nature and cryptographic access mechanisms present novel challenges for traditional inheritance procedures, these technical characteristics do not fundamentally contradict Islamic succession principles but require innovative implementation approaches. The research reveals significant practical complications including proof of ownership difficulties in pseudonymous blockchain networks, valuation challenges for volatile digital assets during estate distribution, and cross-jurisdictional enforcement problems exacerbated by India’s restrictive cryptocurrency tax framework imposing 30% taxation on digital asset transfers. Through doctrinal analysis combining classical Islamic legal texts with contemporary scholarly consensus, the study proposes a hybrid framework utilizing smart contracts for automated Faraid compliance, multi-signature wallet arrangements for secure heir access, and comprehensive legislative reforms to Muslim personal law statutes. The research concludes that Islamic inheritance law’s historical adaptability enables successful accommodation of digital assets while preserving core religious principles, requiring legal innovation rather than doctrinal revision to address technological evolution in wealth transfer mechanisms.

Keywords: Islamic inheritance law, digital assets, cryptocurrency succession, Mirath, Faraid distribution, blockchain technology, Muslim personal law, private keys, smart contracts, cross-jurisdictional enforcement