Mufti Taqi Usmani declares Crypto trading Haram

Renowned Islamic scholar Mufti Muhammad Taqi Usmani has issued a fresh religious ruling (fatwa) declaring the buying and selling of cryptocurrencies to be impermissible (haram) under Islamic law, stating that digital assets do not qualify as wealth or property according to Islamic jurisprudence.

The fatwa, released under the supervision of Darul Uloom Karachi and endorsed by several Islamic scholars, applies not only to cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) but also to all forms of crypto tokens and stablecoins, including USDT.

According to the announcement shared by scholars affiliated with Darul Uloom Karachi, the ruling concludes that cryptocurrencies and blockchain-based tokens fall outside the Islamic legal definition of wealth or property.

"All forms of crypto coins/tokens, including but not limited to stablecoins, fall outside the purview of wealth or property as defined by Islamic Jurisprudence," the statement said.

Based on this interpretation, the fatwa declares that purchasing, selling, or trading cryptocurrencies is not permissible under Shariah.

The scholars further clarified that changing the terminology used for digital assets does not affect the ruling. Whether they are described as cryptocurrencies, virtual currencies, tokens, or stablecoins, the religious verdict remains the same.

The statement specifically mentions that stablecoins such as USDT, despite being linked to traditional fiat currencies, are also covered by the ruling. It states that because these digital assets are not recognised as wealth under Islamic jurisprudence, transactions involving them are considered impermissible.