KARACHI: Pakistan’s top Islamic scholar, Mufti Muhammad Taqi Usmani, issued a new religious ruling (fatwa) declaring cryptocurrency trading as impermissible (haram) under Islamic Law.
The fatwa shared online by scholars affiliated with Darul Uloom Karachi states its rulings apply to both cryptocurrencies and crypto tokens.
“It goes without saying,” they said in an announcement about the ruling, “that all forms of crypto coins/tokens, including but not limited to stablecoins, fall outside the purview of wealth or property as defined by Islamic Jurisprudence.”
“In view of this, the act of purchasing and selling them would be considered as impermissible.”
The announcement specifically states, ‘Therefore, cryptocurrency (whether you buy crypto tokens or a stablecoin like USDT) isn’t considered wealth, and purchasing it isn’t permissible’.
This announcement makes clear that altering terminology doesn’t alter our religious ruling.
The fatwa states, ‘Different types of cryptocurrencies exist, sometimes referred to by various names — for example, virtual currency, token or stablecoin. But whatever its form, this fatwa states that since cryptocurrency does not qualify as wealth, “it is therefore impermissible.”
The ruling goes far beyond well-known cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), covering other blockchain-based tokens and stablecoins such as USDT.
The fatwa has been issued under the supervision of Darul Uloom Karachi with endorsements from multiple religious scholars, based on the documents shared along with the announcement.
While the ruling represents a purely religious viewpoint and cannot be legally enforced as a state law, it will likely shape how some Muslims perceive cryptocurrency trading and investment.
