Mufti Muhammad Taqi Usmani declares Crypto trading haram in a new fatwa
The fatwa, issued in June 2026, was shared online by scholars affiliated with Darul Uloom Karachi, and covers cryptocurrencies, crypto tokens, and stablecoins alike.
It was issued under the supervision of Darul Uloom Karachi and carries endorsements from several religious scholars.
The ruling states that digital assets going by different names, including virtual currency, token, and stablecoin, all fall under the same category and are therefore treated identically. The announcement makes clear that rebranding a digital asset under a new label does not change its religious status.
Also Read: Why gold prices drop in Pakistan against JPMorgan prediction
The fatwa concludes that cryptocurrencies do not meet the Islamic definition of wealth or property, making their purchase and sale impermissible. The document states plainly: "Cryptocurrency is not considered wealth... buying it is not permissible."
This reasoning extends beyond well-known cryptocurrencies such as Bitcoin and Ethereum to include blockchain-based tokens and stablecoins like USDT.
The scholars behind the ruling argue that since these assets lack the qualities of recognized property under Islamic law, trading them cannot be treated as a legitimate transaction.
The fatwa represents a religious opinion rather than a binding state law, though it may still shape how many Muslims in Pakistan view cryptocurrency trading and investment.
