Fatwa Declares Cryptocurrency Transactions Impermissible
President of Wifaq-ul-Madaris Al-Arabia Pakistan and Darul Uloom Karachi, Mufti Muhammad Taqi Usmani, has issued a fatwa declaring cryptocurrency transactions impermissible under Islamic law. According to the ruling, Mufti Taqi Usmani stated that based on research and expert opinions available so far, cryptocurrency cannot be regarded as "wealth" in the Shariah sense and instead represents only numerical entries recorded in digital accounts.
Scope of the Ruling
The fatwa covers all forms of cryptocurrency, including stablecoins such as USDT and other crypto tokens. Mufti Taqi Usmani said that buying and selling goods or conducting financial transactions through cryptocurrency is not permissible. The ruling emphasizes that the digital nature of these assets does not meet the Islamic definition of wealth, which requires tangible value and intrinsic worth.
Authenticity Confirmed
The authenticity of the fatwa was confirmed by Mufti Taqi Usmani's son, Hassan Usmani, who said the ruling circulating on social media had been issued by his father. This confirmation puts to rest any doubts about the origin of the fatwa, which has sparked widespread discussion in Pakistan's religious and financial circles.
Impact on Crypto Adoption in Pakistan
The fatwa is expected to influence Muslim investors and financial institutions in Pakistan, where cryptocurrency adoption has been growing despite regulatory uncertainty. Many observant Muslims seek Shariah-compliant investment options, and this ruling may deter them from engaging in crypto transactions. However, some scholars have previously issued differing opinions, indicating ongoing debate within Islamic jurisprudence.
