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 shared by scholars associated with Darul Uloom Karachi, addresses the religious status of digital assets, including cryptocurrencies, crypto tokens, and stablecoins.
According to the fatwa, cryptocurrencies and stablecoins such as USDT do not meet the Islamic criteria of wealth or property (mal). As a result, buying, selling, investing in, or trading these digital assets is considered impermissible from the perspective outlined in the ruling.
The fatwa further states that changing the terminology—whether referring to an asset as a virtual currency, digital token, or stablecoin—does not alter its religious status. The opinion is based on the scholar’s interpretation of Islamic financial principles and jurisprudence.
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While the fatwa is not legally binding and does not change Pakistan’s financial regulations, it is expected to influence many Muslims who seek religious guidance before making investment decisions. The ruling may also contribute to the ongoing debate surrounding the compatibility of cryptocurrencies with Islamic finance.
The announcement comes as digital assets continue to gain global attention, with governments, regulators, and religious scholars offering differing perspectives on their legality, risks, and ethical implications. The fatwa adds an important religious viewpoint to the broader discussion on cryptocurrency adoption and investment within Muslim communities.
