Mufti Muhammad Taqi Usmani, president of Wifaq-ul-Madaris Al-Arabia Pakistan and Darul Uloom Karachi, has issued a religious ruling (fatwa) on the Islamic status of cryptocurrency, declaring that its buying and selling is not permissible under Islamic law.
According to Mufti Taqi Usmani, research and expert opinions available so far suggest that cryptocurrency does not qualify as “wealth” (maal) in Islamic jurisprudence. Instead, he described it as nothing more than the recording of virtual numbers in digital accounts.
The fatwa states that cryptocurrencies do not meet the Islamic definition of property or lawful wealth, and therefore their purchase, sale, and trade are not permissible.
Mufti Taqi Usmani further said that the ruling applies regardless of whether the digital asset is held in the form of USDT (Tether) or any other crypto token, making transactions involving such assets impermissible.
The fatwa also states that all digital assets marketed under different names, such as virtual currencies, tokens, and stablecoins, fall under the same category and are therefore subject to the same Islamic ruling.
The scholars issuing the fatwa maintained that since these digital assets do not fulfil the conditions required for recognised wealth or ownership under Islamic law, trading them cannot be regarded as a valid Shariah compliant transaction.
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