By: News Desk 92Pavilion | Updated: July 2026
Quick Answer: Pakistan’s top mufti declares crypto trading haram in a fresh religious ruling. Mufti Muhammad Taqi Usmani, head of Darul Uloom Karachi, says cryptocurrency does not count as wealth under Islamic law. Because of this, buying or selling it is not allowed. The ruling covers Bitcoin, Ethereum, crypto tokens, and stablecoins like USDT.
Who Issued the Fatwa
Mufti Muhammad Taqi Usmani is one of Pakistan’s most respected Islamic scholars. He leads Darul Uloom Karachi and also serves as president of Wifaq-ul-Madaris Al-Arabia Pakistan, the country’s largest network of religious seminaries. His opinions on Islamic finance carry weight far beyond Pakistan’s borders.
His son, Hassan Usmani, confirmed that the fatwa spreading online is genuine. It was indeed issued by his father, ending doubts about whether the ruling was real.
What the Fatwa Actually Says
The core of the ruling is simple. Cryptocurrency, in any form, does not qualify as “maal,” the Islamic term for wealth or property. Instead, Mufti Usmani describes it as just a record of numbers in a digital account.
Because it isn’t real wealth under Shariah, buying goods with it isn’t valid either. This applies whether someone pays with Bitcoin, Ethereum, a lesser-known token, or a stablecoin like USDT. The fatwa makes clear that renaming these assets, calling them tokens, virtual currency, or stablecoins, doesn’t change the ruling. They all fall under the same principle.
The Real Cases Behind the Ruling
The fatwa wasn’t issued in a vacuum. It came in response to two real questions submitted to Mufti Usmani.
In the first case, a buyer purchased two books, paying for one with a crypto token and the other with USDT. Mufti Usmani ruled that both purchases were invalid, since no real wealth had changed hands. He directed that the books be returned to the seller.
In the second case, someone bought an educational course using cryptocurrency, but the seller didn’t have permission to resell it. The original course owner had barred any copying or resale. Mufti Usmani ruled this purchase invalid too, and told the buyer to delete the course entirely and gain no benefit from it.
Why the Timing Matters
The fatwa arrived just days after Pakistan’s Ministry of Finance signed a memorandum of understanding with SC Financial Technologies, a company linked to World Liberty Financial. That deal explores using a dollar-pegged stablecoin called USD1 for cross-border payments.
The contrast is hard to miss. While the government explores digital assets for trade, Pakistan’s top mufti declares crypto trading haram for ordinary Muslims. It shows a real gap between where policy is heading and where religious opinion currently stands.
Not the First Word on Crypto
This isn’t Pakistan’s first religious ruling on digital currency. Scholars have debated crypto’s status for years, and opinions remain split even outside Pakistan. In Saudi Arabia, for instance, there’s no single official position. Some scholars, like Sheikh Assim al-Hakeem, call crypto impermissible due to excessive uncertainty. Others, like Sheikh Abdul-Rahman bin Nasir al-Barrak, have said Bitcoin can be treated like cash and accepted as a valid medium of exchange.
Mufti Usmani’s fatwa doesn’t leave much room for that middle ground. His ruling treats all crypto assets the same way, regardless of how they’re marketed or what they’re used for.
What This Means for Crypto Users in Pakistan
It’s worth being clear about one thing: this fatwa is a religious opinion, not a law. It carries no legal penalty and doesn’t ban crypto trading under Pakistani law. Cryptocurrency remains in a grey zone legally, neither fully regulated nor fully banned by the state.
Still, its influence shouldn’t be underestimated. Millions of Pakistanis follow Mufti Usmani’s rulings closely, especially in matters of Islamic finance. For many, this fatwa could be reason enough to step back from crypto trading altogether, even without any change in the law.
Frequently Asked Questions
Q: Did Pakistan’s top mufti declare crypto trading haram?
Yes. Mufti Muhammad Taqi Usmani issued a fatwa stating that cryptocurrency trading is not permissible under Islamic law.
Q: Does this fatwa apply to Bitcoin and Ethereum too?
Yes. The ruling applies broadly to all cryptocurrencies, crypto tokens, and stablecoins, including Bitcoin, Ethereum, and USDT.
Q: Is this fatwa legally binding in Pakistan?
No. It is a religious opinion, not state law. Cryptocurrency trading is not currently illegal under Pakistani law.
Q: Why does the fatwa say crypto isn’t valid for payments?
Because it doesn’t count as “maal,” or wealth, under Islamic law. Without real wealth changing hands, a transaction isn’t considered valid under Shariah.
Q: Are all Islamic scholars in agreement on crypto?
No. Views differ across the Muslim world. Some scholars call crypto impermissible, while others argue certain digital currencies can be treated like cash.
This report is based on statements from Darul Uloom Karachi and reporting from The News, ProPakistani, and Daily Ausaf.
