Prominent Islamic scholar Mufti Muhammad Taqi Usmani has issued a fatwa declaring cryptocurrency, tokens, and stablecoins like USDT haram under Islamic law.
The ruling from Darul Uloom Karachi states that digital assets do not qualify as maal (recognized wealth) and are driven by speculation, making transactions invalid.
Not Recognized as Wealth (Maal): Under Shariah, cryptocurrency does not fulfill the criteria of real wealth or property. The papers describe it as merely “the recording of fictitious numbers in an electronic account“.
Applies to All Crypto Variations: The ruling explicitly specifies that changing the names to virtual currencies, tokens, or stablecoins (such as USDT, Bitcoin, or Ethereum) does not alter the religious ruling, as all fall under the same prohibited digital asset category.
Excessive Speculation (Gharar): The papers highlight that digital assets are heavily driven by gambling-like speculation rather than genuine underlying trade, making them inherently invalid as a medium of exchange.
