In a significant development for the local financial sector and digital asset investors, Pakistan’s top religious authority has explicitly declared cryptocurrency trading to be Haram (impermissible) under Islamic law.
As digital assets like Bitcoin and Ethereum continue to attract retail investors across the country, this latest pronouncement adds a crucial Shariah-compliance perspective to the ongoing debate about the future of digital currencies in Pakistan.
Here is a complete breakdown of why the top Mufti has ruled against crypto trading and what it means for Muslim investors.
The Core Shariah Concerns with Crypto Trading
The fatwa (religious ruling) aligns with a growing consensus among various major Islamic finance scholars—including Mufti Muhammad Taqi Usmani—who have repeatedly cautioned against the use of virtual currencies. The declaration outlines several fundamental reasons why trading in cryptocurrencies violates Islamic financial principles:
1. The Element of Gharar (Excessive Uncertainty)
One of the foundational rules of Islamic finance is the prohibition of Gharar—contracts or transactions involving extreme uncertainty or unknown outcomes. Cryptocurrencies are notoriously volatile, with prices fluctuating wildly based on market sentiment rather than underlying economic realities. Scholars equate this extreme speculative nature to Maysir (gambling), which is strictly forbidden in Islam.
2. Lack of Intrinsic Value (Māl)
For an asset to be traded permissibly in Islam, it must qualify as Māl (valid property or wealth with intrinsic value). The Mufti’s ruling argues that cryptocurrencies are “just numbers” on a screen. Because they lack physical backing, intrinsic utility, or ties to a tangible asset (unlike gold or real estate), they do not qualify as legitimate tradable commodities.
3. No State Backing or Legal Tender Status
A legitimate currency in Islamic jurisprudence typically requires the backing of a sovereign state or a recognized monetary authority to ensure stability and protect public wealth. Cryptocurrencies operate on decentralized networks without central bank oversight. The scholars note that the absence of state supervision leaves individuals completely unprotected if a market collapse or cyber theft occurs.
4. Facilitation of Illicit Activities
Another major ethical concern raised by the religious authorities is the anonymity afforded by blockchain transactions. Because cryptocurrencies operate outside traditional banking regulations, they can easily be exploited for money laundering, contraband trade, and tax evasion, further pushing them into the realm of impermissibility.
Hazrat Mufti Muhammad Taqi Usmani sahib has issued a new fatwa on #Crypto #CryptoToken #Stablecoin
*حضرت مفتی محمد تقی عثمانی صاحب دامت برکاتہم* اور دارالافتاء جامعہ دارالعلوم کراچی کی جانب سے *کرپٹو کرنسی*، *کرپٹو ٹوکن*، اور *اسٹیبل کوائن* پر تازہ فتویٰ جاری ہوگیا ہے۔ pic.twitter.com/rCrLnx2j3D— Mubashir Husain Rehmani (@MRehmani) June 20, 2026
Spot Trading vs. Futures Trading
While the blanket declaration deems crypto trading haram, it specifically targets the most prevalent forms of modern crypto investment:
- Futures & Margin Trading: Using leverage or borrowing money with interest to trade crypto futures is unequivocally haram due to the involvement of Riba (interest) and selling assets one does not physically own.
- Holding as Currency: While a minority of global scholars leave the door open for crypto to become halal if it becomes widely adopted as official legal tender by governments, the current consensus in Pakistan firmly rejects using it as a profit-making investment vehicle.
What This Means for Pakistani Investors
For Muslims striving to ensure their income and investments remain Halal, this ruling is a clear directive to avoid the crypto market.
Investors currently holding digital assets are advised by Shariah experts to seek localized guidance from qualified Islamic finance scholars on how to ethically liquidate their portfolios. As the regulatory and religious landscape continues to take a firm stance, Pakistani investors may need to pivot toward established, Shariah-compliant investment avenues like mutual funds, real estate, and verified stock market trading.