Mufti Muhammad Taqi Usmani, President of Darul Uloom Karachi and the Federation of Arab Schools, has issued a detailed fatwa stating that the buying, selling, and use of cryptocurrencies are not permissible under Islamic Shariah.
The religious ruling concludes that cryptocurrencies, including Bitcoin, USDT (Tether), stablecoins, and other digital tokens, do not satisfy the Islamic legal requirements of property (maal) or a tradable asset, making related transactions impermissible according to the scholars who issued the fatwa.
Cryptocurrency does not qualify as Shariah-recognized property
According to the fatwa, the available research and expert opinions indicate that cryptocurrencies primarily exist as digital entries in electronic accounts rather than tangible or Shariah-recognised assets.
Mufti Taqi Usmani stated that because these digital assets do not fulfil the conditions necessary for valid ownership under Islamic jurisprudence, their purchase and sale cannot be considered lawful commercial transactions.
The ruling emphasizes that Islamic commercial law requires an asset to meet specific standards of ownership and property before it can be traded.
Bitcoin, USDT, and stablecoins included
The fatwa makes clear that the ruling applies broadly to all forms of cryptocurrency.
It specifically mentions Bitcoin, USDT (Tether), stablecoins, crypto tokens, and other virtual currencies, stating that changing the name or structure of a digital asset does not alter its Shariah status.
According to the ruling, these digital assets fall into the same legal category and are therefore subject to the same Islamic judgement.
Using cryptocurrency for payments also ruled impermissible
In addition to prohibiting cryptocurrency trading, the fatwa states that using digital currencies to purchase goods or conduct financial transactions is also not permissible.
The scholars argue that since cryptocurrencies do not qualify as valid property under Islamic law, they cannot serve as a legitimate medium for commercial exchange.
Part of an ongoing global Islamic debate
The latest ruling reflects Mufti Taqi Usmani’s interpretation of Islamic commercial principles and contributes to the broader international discussion among Islamic scholars regarding the religious status of cryptocurrencies.
While some scholars and Islamic finance experts have expressed differing views on digital assets under specific conditions, the fatwa issued by Darul Uloom Karachi concludes that, based on current research and available evidence, cryptocurrencies do not meet the Shariah requirements necessary for lawful ownership or trade.
The ruling is expected to influence discussions on cryptocurrency adoption and Islamic finance, particularly in Pakistan and other Muslim-majority countries where Shariah guidance plays an important role in financial decision-making.
