A new religious ruling by Pakistan’s leading Islamic scholar, Mufti Taqi Usmani, has renewed debate over Crypto Trading and digital currencies. The fatwa states that cryptocurrencies, crypto tokens, and stablecoins are not permissible under Islamic law because they do not meet the Shariah definition of wealth or property.
The ruling was issued under the supervision of Darul Uloom Karachi. It has also been supported by several Islamic scholars associated with the institution. The fatwa applies to cryptocurrencies, blockchain-based crypto tokens, and stablecoins without making distinctions between different types of digital assets.
According to the ruling, cryptocurrencies cannot be treated as wealth under Islamic principles. Therefore, buying, selling, or engaging in Crypto Trading is considered impermissible from a Shariah perspective. The fatwa explains that the religious status of these assets does not change even if they are described using different terms.
The document states that names such as cryptocurrency, virtual currency, crypto token, and stablecoin all refer to the same category of digital assets. It adds that changing the label of an asset does not alter its religious ruling. As a result, all such assets are treated equally under the fatwa.
The ruling also includes popular cryptocurrencies such as Bitcoin and Ethereum. It further extends to blockchain-issued tokens and stablecoins, including USDT. According to the fatwa, none of these digital assets qualify as wealth in the Islamic legal sense. Therefore, transactions involving them are also considered impermissible.
The announcement has generated fresh discussion among financial experts, investors, and religious scholars. Cryptocurrency has become increasingly popular worldwide. However, its religious status remains a subject of debate within the Muslim community.
Islamic scholars continue to hold different opinions on the issue. Some believe cryptocurrencies involve excessive uncertainty and speculation. They argue that these factors prevent digital assets from meeting the requirements of valid wealth under Islamic jurisprudence.
Other scholars take a different view. They believe some cryptocurrencies may be permissible if they serve legitimate purposes and gain broad acceptance. They also stress that digital assets should be traded responsibly instead of being used for gambling or reckless speculation.
Even scholars who allow limited use of cryptocurrencies generally prohibit activities involving interest (riba), fraud, excessive leverage, and market manipulation. They argue that financial transactions should remain transparent and fair under Islamic principles.
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The latest fatwa is expected to influence public discussion on Crypto Trading in Pakistan. While it reflects the opinion of Mufti Taqi Usmani and supporting scholars, the broader debate over cryptocurrencies and their compliance with Islamic law is likely to continue as digital finance evolves.
