A fatwa issued by Pakistan’s leading Islamic scholar Mufti Taqi Usmani sparked new debate over cryptocurrencies.
The ruling declares that trading cryptocurrencies, crypto tokens, and stablecoins is haram under Islamic law, arguing that these digital assets do not meet the Shariah definition of wealth or property.
The fatwa issued under supervision of Darul Uloom Karachi and circulated by scholars affiliated with the institution applies broadly to cryptocurrencies, blockchain-based crypto tokens, and stablecoins. He said cryptocurrencies do not fulfill Islamic definition of wealth or property. On that basis, the fatwa concludes that buying, selling, or trading these digital assets is not permissible from a Shariah perspective.
The ruling stated that cryptocurrencies are not recognized as wealth, regardless of whether they are crypto tokens or stablecoins such as USDT. As a result, transactions involving these assets are considered impermissible.
The fatwa also dismisses distinctions based on terminology, explaining that labels including “cryptocurrency,” “virtual currency,” “token,” and “stablecoin” all refer to the same category of digital assets. It emphasizes that changing the name of an asset does not change its religious status.
It extends beyond well-known cryptocurrencies such as Bitcoin and Ethereum to include blockchain-issued tokens and stablecoins like USDT, treating them all under the same religious principle. The fatwa carries endorsements from several Islamic scholars, reinforcing its standing within the country’s religious community.
