Fatwa Against Crypto! Pakistan Cleric Calls Bitcoin, Stablecoins’ Trading 'Haram'

Pakistan has been stepping up efforts to regulate and promote the cryptocurrency sector by building a framework for virtual assets. In this regard, a prominent Islamic scholar has released a fatwa stating that dealing in cryptocurrency is haram under Islamic law.

The religious ruling was issued by Islamic scholar Mufti Muhammad Taqi Usmani through Darul Uloom Karachi, a prominent Sunni Islamic seminary in Pakistan. The institution said the opinion has received support from several other Islamic scholars. While the ruling does not carry legal force, it could shape how Muslims in the country approach cryptocurrency investment and trading.

According to PTI, the fatwa states that cryptocurrencies, crypto tokens and stablecoins do not satisfy the Islamic definition of wealth or property. On that basis, their buying and selling have been declared impermissible under Shariah. The ruling also states that using different terms such as cryptocurrency, virtual currency, token or stablecoin does not change the nature of these digital assets or alter the religious position on them.

The fatwa applies to widely traded digital assets, including Bitcoin, Ethereum and blockchain-based tokens, as well as stablecoins such as USDT (Tether). It treats these assets as belonging to the same category, irrespective of the terminology used to describe them.

The religious ruling comes at a time when the Pakistani government has been actively working to regulate and promote the country’s cryptocurrency and virtual assets sector. Over the past year, it has announced the establishment of the Pakistan Virtual Assets Regulatory Authority to oversee and license cryptocurrency exchanges while supporting the integration of blockchain technology into the country’s financial system.

Pakistan is also looking to convert surplus energy into economic value by allocating excess grid capacity for Bitcoin mining and artificial intelligence (AI) data centres. In addition, the country has explored strategic digital asset partnerships, which include engagements with US-based platforms such as World Liberty Financial, as part of its efforts to attract investment and strengthen its technology infrastructure.

The fatwa adds to the ongoing debate around cryptocurrencies in Pakistan, where digital assets continue to draw attention from policymakers, industry participants and religious scholars as the sector evolves.