Prominent Islamic scholar Mufti Muhammad Taqi Usmani among others affiliated with Darul Uloom Karachi have declared the buying and selling of cryptocurrency, crypto tokens and stablecoins as “impermissible under Islamic law”.
Usmani, in a newly-issued fatwa [Islamic ruling] confirmed by his son Hasan Usmani, stated that cryptocurrencies do not qualify as maal [property or wealth] or as an asset capable of lawful ownership under Islamic jurisprudence.
As a result, trading or dealing in such digital assets is considered impermissible under Shariah.
The ruling applies equally to cryptocurrencies, crypto tokens and stablecoins, including widely traded Bitcoin, Ethereum and Tether (USDT), as scholars maintained that all of these fall within the same category of digital assets.
They explained that cryptocurrencies are referred to by different names, including virtual currencies, tokens and stablecoins, but these terms describe the same underlying class of digital assets. Consequently, the fatwa applies uniformly regardless of the terminology used.
The ruling further stated that changing the name or classification of a digital asset does not alter its status under Islamic law. Whether a digital asset is marketed as a cryptocurrency, a blockchain-based token or a stablecoin, the same principles remain applicable.
