Pakistan’s leading Islamic scholar, Mufti Muhammad Taqi Usmani, has issued a strong religious ruling against cryptocurrency. In a fatwa released in June 2026, he declared that trading, buying, or investing in crypto is haram (not allowed) under Islamic law.
The ruling was shared by scholars from Darul Uloom Karachi. It clearly states that cryptocurrencies, crypto tokens, and stablecoins like USDT do not qualify as real “wealth” or property in Islam. Therefore, any dealing in them is impermissible.
The fatwa explains that changing names like “virtual currency,” “token,” or “stablecoin” does not change the decision. It applies to popular coins such as Bitcoin and Ethereum as well. Mufti Taqi Usmani is a highly respected expert in Islamic finance. His opinions carry great weight among Muslims in Pakistan and around the world.
This is not the first time Mufti Sahab has spoken on the topic. He has long raised concerns about the speculative nature of crypto, its lack of real backing, and high volatility. He believes these features make it similar to gambling, which Islam strictly forbids.
The fatwa is not legally binding on the government. However, it is likely to influence many Pakistani Muslims who follow traditional Islamic teachings. It may discourage people from investing in digital assets.
Crypto has gained popularity in Pakistan despite economic challenges. Many young people see it as a way to earn money. This new ruling could create confusion and debate in the community.
