Valuation, Categorisation, and Faraid Distribution of Digital Assets

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The rapid expansion of digital ownership has introduced new and complex questions for Islamic inheritance law, particularly in relation to the identification, valuation, and distribution of digital assets under the framework of Tarika and Faraid. While classical fiqh developed comprehensive rules for tangible and intangible property, it did not anticipate the rise of cryptocurrencies, online businesses, monetized content, domain names, digital wallets, and platform-based assets. This article examines how such assets may nonetheless be incorporated within the Shariah inheritance structure by treating them as part of the deceased’s estate, subject to the ordinary rules governing debts, bequests, and fixed shares. It explores the practical problems posed by digital inheritance, including asset discovery, volatility in valuation, loss of private keys, and contractual restrictions imposed by platform terms of service. The article further argues that a properly drafted Wasiyyah can serve as the central mechanism for digital estate planning by enabling disclosure, access, and administration of digital holdings. Ultimately, the article contends that digital assets are fully capable of being accommodated within Islamic inheritance law, provided that juristic reasoning is applied with technical awareness and a strong commitment to the protection of heirs’ rights.