Islamic crowdfunding and Shariah compliance regulation: problems and oversight

Purpose - This study aims to identify the problems inshariahcompliance and the weak oversight of implementing Islamic crowdfunding (ICF).Shariahcompliance regulation is an essential subsystem in Islamic social finance ecosystems. Design/methodology/approach - This type of research is legal research. The research approaches are the statute, comparative and conceptual approaches. The study in this research examines Indonesia, the UK and Malaysia. Findings - ICF is one of the fastest-growing sectors of Islamic financial technology (fintech). The Islamic fintech sector is showing maturity signals with a market size of $79bn in 2021, projected at $179bn in 2026. Malaysia, Saudi Arabia and Indonesia lead the Index by Global Islamic Fintech (GIFT) Index scores. However, lowshariahcompliance is still an issue in implementing ICF. This problem is caused by regulatory support that is still lacking and oversight ofshariahcompliance is not optimal. On the one hand,shariahcompliance is the ICF core principle forShariahGovernance. Research limitations/implications - This study examines the regulation and oversight of ICF in Indonesia, Malaysia and the UK. Indonesia and Malaysia, a country with the highest GIFT index score in the world, and the UK, a country with an Islamic finance sector experiencing rapid growth. Practical implications - The research results onshariahcompliance regulation in ICF are helpful as a comprehensive approach for developing sustainable Islamic social finance ecosystems. Social implications - Shariahcompliance is the core principle of ICF governance. Its implementation can increase public trust. Originality/value - Crowdfunding platform and issuers in ICF must implementshariahcompliance. Therefore, it is essential to consider the presence ofshariahcompliance requirements and aShariahSupervisory Board (DPS).