Mufti Taqi Usmani, one of Pakistan’s leading Islamic scholars, has issued a new fatwa declaring cryptocurrency trading impermissible under Islamic law. The religious ruling states that cryptocurrencies, crypto tokens, and stablecoins do not meet the Islamic definition of wealth or property.
The fatwa was issued in June 2026 and was later shared online by scholars affiliated with Darul Uloom Karachi. According to the announcement, the ruling applies to all forms of digital assets commonly traded in cryptocurrency markets.
According to Mufti Taqi Usmani, cryptocurrencies cannot be classified as wealth under Islamic financial principles. As a result, buying and selling these digital assets is considered impermissible from a religious perspective.
The announcement specifically mentions that the ruling applies to cryptocurrencies, crypto tokens, and stablecoins. It also names USDT as one example of a stablecoin covered by the fatwa.
The ruling explains that different terms such as cryptocurrency, virtual currency, token, and stablecoin all refer to the same category of digital assets. Therefore, simply changing the name of the asset does not change its religious status.
The fatwa states that these digital assets do not qualify as wealth under Islamic law. Because of this, Muslims are advised that trading or purchasing them is not permissible according to the ruling.
The announcement also makes it clear that the fatwa is not limited to major cryptocurrencies such as Bitcoin and Ethereum. It extends to blockchain-based tokens and stablecoins as well.
The ruling was issued under the supervision of Darul Uloom Karachi and, according to the announcement, carries endorsements from several Islamic scholars. The institution shared the documents explaining the religious opinion and its reasoning.
Although the fatwa provides religious guidance, it is not a government law or financial regulation. A fatwa represents the opinion of qualified Islamic scholars and is intended to guide Muslims on religious matters.
Even though it does not have legal status, the opinion of Mufti Taqi Usmani may influence many Muslims when making financial and investment decisions. His views on Islamic finance are widely respected in Pakistan and internationally.
The latest ruling comes as cryptocurrencies continue to gain attention around the world. Digital assets have attracted both investors and regulators, while Islamic scholars continue to debate whether they comply with Shariah principles.
Supporters of cryptocurrencies describe them as an important financial innovation. Others have raised concerns about their volatility, regulatory uncertainty, and compatibility with Islamic financial rules.
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With this latest fatwa, Mufti Taqi Usmani has reaffirmed his view that cryptocurrencies do not meet the Islamic definition of wealth. The ruling is expected to contribute to ongoing discussions about the religious status of digital assets among scholars, investors, and the broader Muslim community.
