President of Wifaq-ul-Madaris Al-Arabia Pakistan and Darul Uloom Karachi, Mufti Muhammad Taqi Usmani, has issued a detailed religious ruling declaring that cryptocurrencies do not meet the Islamic definition of wealth or property, making their buying, selling, and commercial use impermissible under Shariah.
According to the fatwa, the ruling is based on extensive research and consultations with Islamic scholars and experts who examined the nature of cryptocurrencies and other digital assets. The scholars concluded that cryptocurrencies do not qualify as “maal” (wealth) under Islamic jurisprudence because they lack the essential characteristics required for lawful ownership, possession, and exchange.
Mufti Taqi Usmani explained that cryptocurrencies exist only as digital numerical entries within electronic systems and do not represent tangible or legally recognized assets. Due to this nature, they cannot be regarded as legitimate property under Islamic law.
The fatwa further states that the ruling applies not only to well-known cryptocurrencies such as Bitcoin and Ethereum but also to stablecoins, including USDT, and other crypto tokens. According to the scholars, these digital assets share the same underlying characteristics and therefore fall under the same religious ruling.
The document also clarifies that purchasing goods, paying for services, or conducting financial transactions through cryptocurrencies is not considered permissible under Shariah. The scholars maintained that changing the name or category of a digital asset does not alter its legal status under Islamic law.
While cryptocurrencies continue to attract global attention as investment and payment instruments, the ruling reiterates that, from the perspective of the scholars who issued the fatwa, these digital assets do not fulfill the Shariah requirements necessary for lawful ownership or commercial transactions.
