A Feasibility Study of Trading Digital Assets in the Metaverse from the Perspective of Islamic Law: An Exploration of the Potential Gharar (Ambiguity) Issue

‌ ∴ Introduction ∴ ‌
The metaverse, a rapidly expanding virtual world, has evolved into a domain that significantly influences numerous aspects of human life, ranging from social interactions to complex economic transactions. In this immersive digital environment, users can buy, sell, and exchange a variety of intangible assets, including virtual land, digital artworks, avatars, and non-fungible tokens (NFTs). As the metaverse becomes increasingly integral to global commerce, it necessitates a legal framework that accounts for both its unique attributes and the enduring principles of contract law.
     From an Islamic legal perspective, the legitimacy of contracts hinges on the satisfaction of several requirements: the intention and consent of contracting parties, their legal capacity, the legitimacy of the transaction’s purpose, and most importantly, the unambiguous definition of the subject matter. The central challenge in metaverse transactions lies in verifying the nature and value of digital assets that do not possess a tangible counterpart. Unlike traditional commodities, these assets exist entirely in a virtual form, which can introduce elements of uncertainty and lead to potential disputes.
     One of the core doctrines in Islamic law that addresses uncertainty is the concept of an uncertain transaction [Gharar]. Gharar refers to excessive ambiguity or risk arising from incomplete information or the uncertain outcome of contractual obligations. Given the intangible and abstract characteristics of metaverse assets, questions arise about whether such transactions inherently involve Gharar to a degree that might invalidate the contract under Islamic jurisprudence (Fiqh). This article aims to provide a foundational examination of these issues, thereby shedding light on the feasibility of metaverse transactions from the standpoint of Islamic law.
 
‌ ∴ Research Question ∴ ‌
The principal research question driving this study is: How does the concept of Gharar apply to the trading of digital assets in the metaverse under Islamic law, and what criteria must be met for these transactions to be considered valid?
     At the core of this inquiry is determining whether the intangible nature of metaverse assets, combined with the evolving technological and contractual frameworks governing their exchange, introduces unacceptable levels of ambiguity. We seek to identify how Islamic jurisprudence can evaluate such novel forms of property and whether additional criteria—beyond those governing traditional contracts—are necessary to ensure contractual legitimacy in the digital realm.
 
‌ ∴ Research Hypothesis ∴ ‌
In light of the underlying principles of Islamic contract law, this study posits the following primary hypothesis:
     Metaverse transactions, when rendered sufficiently transparent and when the subject matter is recognized by rational agents (i.e., deemed ‘valuable’ in custom), can be established as free from the issue of Gharar and therefore valid under Islamic law.
     Transparency is central to this hypothesis; clear contractual terms, precise descriptions of digital assets, and verifiable proof of ownership are proposed to address or eliminate uncertainty. Additionally, the study hypothesizes that if the value of a digital asset is objectively recognized by the community of ‘wise’ (or rational) individuals, then the asset meets the legitimacy requirements necessary under Islamic jurisprudence.
 
‌ ∴ Methodology & Framework, if Applicable ∴ ‌
This article adopts a doctrinal research methodology, grounded in both classical and contemporary Islamic jurisprudential sources, to analyze the intricate relationship between metaverse transactions and the principle of Gharar.
 
‌ ∴ Results & Discussion ∴ ‌
The analysis conducted in this study illuminates several core findings related to the permissibility and validity of metaverse transactions under Islamic law, particularly when examining the potential presence of Gharar (excessive ambiguity). Building upon classical Islamic legal principles and modern technological insights, the results can be summarized in three main thematic areas.
     First, regarding the nature and legitimacy of digital assets, the study finds that while metaverse items—such as virtual land, non-fungible tokens (NFTs), and other intangible commodities—lack physical existence, they can nonetheless be recognized as valid subject matters of sale. This recognition arises from their measurable and demonstrable value in virtual marketplaces, where supply and demand mirror real-world economic dynamics. The intangible characteristics of these assets do not, by themselves, introduce prohibitive levels of Gharar. Instead, proper identification of each asset’s essential features—e.g., ownership rights, distinctiveness, and utility—plays a decisive role in mitigating ambiguity and establishing a valid basis for transactions.
     Second, the study’s findings highlight the importance of transparency technologies, such as blockchain, in minimizing uncertainty. Blockchain’s distributed ledger technology ensures verifiability and traceability, thereby reducing the likelihood of hidden defects and undisclosed risks. By creating a tamper-proof record of each transaction, the contracting parties gain clarity and confidence that align with the Shari’ah requirement to eliminate hidden elements of uncertainty. In this regard, the principle of “Nafi al-Gharar” (no-harm principle) can be satisfied when essential information about the asset’s attributes, provenance, and ownership details is readily available and verifiable.
     Third, custom [‘Urf] and community recognition play pivotal roles in reducing ambiguity. As the study shows, rational individuals—through widespread social and economic practices—have come to accept certain digital assets as possessing real and quantifiable value. By acknowledging these assets as tradeable commodities, the metaverse community effectively sets a standard of transparency and uniform expectations, a concept aligned with Islamic jurisprudential teachings that emphasize communal consensus. Moreover, the “rule of Ibahah” (permissibility) reinforces that any new form of transaction not explicitly forbidden by textual evidence remains permissible, thus validating the buying, selling, and exchanging of metaverse commodities.
 
‌ ∴ Conclusion ∴ ‌
The findings of this study emphasize that trading digital assets in the metaverse, while inherently novel, need not be mired in excessive ambiguity or uncertainty if properly structured. Customary and Islamic legal principles, serving as two foundational criteria, significantly mitigate such ambiguities. By setting clear and accepted norms grounded in community consensus, these principles offer a powerful framework for ensuring the Shari’ah validity of metaverse transactions.
     In particular, the “Nafi al-Gharar” principle (prohibition of ambiguity) forms a crucial bulwark against contractual risk, stipulating that any transaction afflicted by uncertainty may be deemed invalid under Islamic law. However, when the intrinsic attributes of digital assets—ranging from NFTs to cryptocurrencies—are thoroughly documented and rendered transparent through blockchain or similar technologies, the element of Gharar is effectively neutralized. Hence, from an Islamic jurisprudential standpoint, such assets become permissible, provided their ownership and usage are unambiguously established.
     Meanwhile, the rule of Ibahah (permissibility) dictates that in situations where no explicit Shari’ah prohibition exists, the default legal position permits such transactions. Thus, absent a clear textual ban, metaverse dealings in digital assets remain lawful. Reinforcing this stance is the custom of rational individuals [‘Urf al-‘Uqala’], which elevates widespread social acknowledgment of metaverse assets as having genuine economic value. NFTs, virtual lands, and similar items are recognized by communities as holding tangible worth, notwithstanding their digital essence. This collective recognition, documented through transparent technical means, ensures that such assets are not subject to Gharar and upholds their validity in Islamic law.
     Ultimately, if a rational community deems a specific digital asset as possessing recognized value—and in the absence of explicit scriptural prohibitions—such transactions are acceptable. This alignment between community practice and Islamic jurisprudence fortifies the legitimacy of metaverse transactions, underscoring the practical viability of digital-asset trading under Shari’ah principles. By harnessing technologies that guarantee transparent information and by grounding novel practices in established legal norms, the metaverse stands poised to develop as a robust, Shari’ah-compliant marketplace for the exchange of virtual assets.