KARACHI: A June 2026 crypto fatwa issued by Darul Uloom Karachi, Pakistan, declared the buying and selling of cryptocurrencies, crypto tokens and stablecoins impermissible under Islamic Sharia.
The ruling, attributed to renowned Islamic scholar Mufti Muhammad Taqi Usmani and other scholars, states that cryptocurrency does not qualify as property or an ownable asset under Islamic principles.
The fatwa states that digital assets listed as virtual currency, tokens or stablecoins fall in the same category. It says changing the name of a digital asset does not change its Sharia status.
According to the document, cryptocurrencies do not meet the definition of “maal,” or property, under Islamic Sharia. The fatwa states that cryptocurrency cannot be treated as maal and cannot be bought or sold.
The ruling applies beyond Bitcoin and Ethereum. It also covers blockchain-based tokens and stablecoins, including USDT.
The scholars issuing the fatwa said these digital assets do not fulfil the conditions of valid ownership under Islamic law. They said trading them cannot qualify as a permissible transaction from a Sharia perspective.
The fatwa is a religious opinion, not a state-enforced legal decree. However, it may influence how many Muslims in Pakistan view cryptocurrency trading and investment.
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Hassan Usmani, son of Mufti Taqi Usmani, confirmed that the ruling attributed to his father was authentic.
The fatwa says cryptocurrency cannot be lawfully bought or sold because it does not constitute property or an asset capable of lawful ownership. It applies the same ruling to crypto tokens and stablecoins.
Scholars affiliated with Darul Uloom Karachi also shared the fatwa online. The ruling applies to Bitcoin, Ethereum, stable tokens including USDT, and blockchain-based tokens.
