ISLAMABAD – For years, Muslims debated whether cryptocurrency is in line with Islamic laws or its the other case. Now, one of the most influential voices in Islamic finance Mufti Muhammad Taqi Usmani weighed in, declaring cryptocurrency trading and investment impermissible under Shariah.
Usmani issued new fatwa declaring cryptocurrency trading and investment haram under Islamic law, a ruling that is likely to have a significant impact on Muslim investors in Pakistan and beyond.
The fatwa issued under the supervision of Darul Uloom Karachi and circulated by scholars affiliated with the institution, states that cryptocurrencies, blockchain-based crypto tokens, and stablecoins, including USDT, do not qualify as “wealth” or “property” according to the principles of Islamic jurisprudence. Because they do not meet this fundamental Shariah requirement, the ruling concludes that buying, selling, trading, or investing in these digital assets is not permissible.
Fatwa on Crypto
(1)— صورتِ مسؤلہ میں آپ کے لیے کرپٹو کرنسی کے ذریعہ مذکورہ دونوں کتابیں خریدنا جائز نہیں تھا؛ کیونکہ ماہرین کی اب تک کی تحقیق اور رائے کے مطابق کرپٹو کرنسی مال نہیں ہے، بلکہ محض کھاتہ میں فرضی نمبروں کا اندراج ہے، چاہے وہ USDT کی صورت میں ہو یا کرپٹو ٹوکن کی صورت میں ہو، اس لیے کرپٹو کرنسی سے خریدنا جائز نہیں ہوا، جس کی وجہ سے آپ ان کتابوں کے مالک نہیں ہوئے، اور نہ ہی آپ کے لیے ان کو آگے بیچنا جائز ہے، بلکہ آپ پر لازم ہے کہ آپ یہ کتابیں اسی شخص کو لوٹا دیں جس سے آپ نے خریدی ہیں۔
The ruling applies not only to well-known cryptocurrencies such as Bitcoin and Ethereum, but also to blockchain-issued crypto tokens and stablecoins. It further emphasizes that changing the terminology of an asset does not change its religious status. Whether described as a cryptocurrency, virtual currency, token, or stablecoin, all such digital assets are treated the same under the fatwa.
According to the ruling, the issue is not the technology behind blockchain itself but the Shariah status of the digital assets created on it. The fatwa argues that these assets fail to satisfy the Islamic legal definition of wealth, making commercial transactions involving them impermissible.
The opinion has also been endorsed by several Islamic scholars, reinforcing its standing within Pakistan’s religious community. Although a fatwa is not legally binding, Mufti Taqi Usmani is regarded as one of the world’s most influential authorities on Islamic finance. As a result, his views are expected to carry considerable weight among Muslims evaluating whether to invest in cryptocurrencies.
The ruling comes amid continued global debate over the compatibility of cryptocurrencies with Islamic law. Islamic scholars remain divided on the issue. Those who oppose cryptocurrencies argue that they involve excessive uncertainty (gharar), speculative trading, and characteristics that prevent them from being recognized as legitimate wealth under Shariah principles.
Others, however, contend that some digital assets may be permissible if they serve genuine economic purposes, achieve widespread acceptance, and are used responsibly rather than for gambling or high-risk speculation. Even scholars who take this more permissive view continue to prohibit practices involving interest (riba), fraud, excessive leverage, deception, and market manipulation.
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