Pakistan’s prominent Islamic scholar, Mufti Muhammad Taqi Usmani has declared cryptocurrency trading impermissible (haram) under Islamic law in a new religious ruling (fatwa) issued in June 2026.
The fatwa, shared online by scholars affiliated with Darul Uloom Karachi, applies to cryptocurrencies, crypto tokens, and stablecoins.
According to the ruling, cryptocurrencies do not fulfill the Islamic definition of wealth or property, making their purchase and sale impermissible.
The fatwa states that cryptocurrencies—including virtual currencies, tokens, and stablecoins such as USDT—fall under the same category of digital assets. It emphasizes that changing the terminology does not alter the religious ruling.
The announcement specifically notes that cryptocurrencies are not considered wealth under Islamic jurisprudence. Therefore, buying, selling, or trading them is regarded as impermissible.
The ruling extends beyond well-known digital currencies such as Bitcoin and Ethereum to include blockchain-based tokens and stablecoins like USDT.
Issued under the supervision of Darul Uloom Karachi, the fatwa carries endorsements from several religious scholars, according to the documents shared with the announcement.
Although the fatwa is a religious opinion rather than a legal or regulatory decision by the Pakistani government, it is expected to influence how many Muslims in Pakistan and elsewhere view cryptocurrency trading and investment.
