A significant new religious ruling from Pakistan’s leading Islamic authority has caused a stir in the digital asset market. The detailed decree explicitly bans all forms of virtual trading. It warns that changing technical names will not alter the fundamental law.
Prominent Islamic scholar Mufti Muhammad Taqi Usmani has officially issued a major fatwa declaring all cryptocurrency trading completely impermissible under Shariah. Scholars from Darul Uloom Karachi shared the announcement online. They clarified that the restriction is not just for Bitcoin. It also covers virtual tokens and stablecoins like USDT.
Mufti Taqi Usmani stated:
“I have given this opinion in the light of Shariah principles that cryptocurrency, crypto tokens and stablecoins are not permissible for buying and selling because, under Shariah, they do not hold the status of wealth or an asset that can be owned. Simply changing the name does not alter their original nature and Shariah ruling.”
Why the Ruling Applies to All Tokens
According to the religious announcement, the core reason for the ban is that digital assets fail to meet the strict Islamic definition of real wealth. Scholars explained that while terms like “digital currency,” “virtual token,” and “stablecoin” sound different, their basic nature is exactly the same.
The decree emphasizes that repackaging a digital asset or giving it a fancy new title cannot change its legal standing under Shariah. Because of this the strict ruling applies equally to every single form and name found across the global crypto market.
Core Legal Status of Digital Assets
According to the scholars, these assets lack the tangible backing, intrinsic value, or state guarantee needed to function as valid legal tender. Because the assets are not recognized as real wealth, the institution ruled that buying, selling, or generating profits through crypto trading platforms is impermissible.
The scholars cautioned citizens against putting their capital into speculative internet-based systems that operate without real economic utility or physical asset protection.
