Renowned Islamic scholar Mufti Muhammad Taqi Usmani has issued a fatwa declaring cryptocurrency trading impermissible (haram) under Islamic law. The ruling, released in June 2026 and circulated by scholars associated with Darul Uloom Karachi, offers a detailed religious perspective on digital assets, including cryptocurrencies, crypto tokens, and stablecoins.
According to the fatwa, cryptocurrencies and stablecoins such as USDT do not fulfill the Islamic requirements of wealth (mal) or recognized property. Based on this interpretation, the ruling concludes that buying, selling, trading, or investing in such digital assets is not permissible under the principles of Islamic jurisprudence.
The fatwa further explains that changing the terminology—whether describing these assets as virtual currencies, digital tokens, or stablecoins—does not alter their religious status. The opinion is grounded in Islamic financial principles and the scholar’s assessment of the nature of these digital instruments.
Although the fatwa is not legally binding and does not change Pakistan’s laws or financial regulations regarding cryptocurrencies, it is expected to have a significant impact on many Muslims who seek religious guidance before making financial and investment decisions.
The ruling comes at a time when cryptocurrencies remain a subject of global debate among governments, regulators, economists, and religious scholars. While some Islamic scholars and institutions have expressed reservations about crypto assets due to concerns over speculation, uncertainty, and intrinsic value, others have offered different interpretations under specific conditions.
Mufti Taqi Usmani’s opinion is likely to play an influential role in shaping public discussion on cryptocurrency adoption within Pakistan and other Muslim-majority societies, particularly among investors seeking investments that align with Islamic financial principles.
