Is Cryptocurrency Halal or Haram? Perspectives of Islamic Scholars in Pakistan and Around the World
Introduction
Is cryptocurrency halal or haram? This question continues to generate debate among Islamic scholars. While some scholars consider certain cryptocurrencies permissible under specific conditions, others question their legitimacy under Islamic principles.
The disagreement largely comes down to whether cryptocurrencies qualify as recognised wealth (maal), whether they have genuine utility and value, and whether their use involves excessive uncertainty (gharar), gambling (maysir), or interest (riba).
Here is a look at the key scholarly positions, including important developments in Pakistan.
Scholars Who Consider Cryptocurrency Permissible
Mufti Muhammad Abu-Bakar
In his research paper, Shariah Analysis of Bitcoin, Cryptocurrency, and Blockchain, Mufti Muhammad Abu-Bakar argued that Bitcoin can be recognised as a form of wealth under certain circumstances. He examined its use, market acceptance, and the principles of Islamic commercial law.
Read his research:
https://islamicbankers.files.wordpress.com/2019/02/2017-shariah-analysis-of-bitcoin-cryptocurrency-blockchain.pdf
Mufti Faraz Adam
Mufti Faraz Adam has written about the Shariah status of crypto-assets, explaining that digital assets should be assessed according to their characteristics, ownership rights, utility, and intended use. His approach does not mean every cryptocurrency or transaction is automatically permissible.
Read his analysis:
https://amanahadvisors.com/insights/my-thoughts-on-crypto-assets/
Scholars Who Have Raised Objections
Mufti Muhammad Taqi Usmani
Mufti Taqi Usmani has expressed reservations about cryptocurrency, particularly concerning its recognition as wealth under Islamic law, its underlying value, and the uncertainty associated with it.
In June 2026, Darul Uloom Karachi issued a fatwa addressing purchases made using cryptocurrency, including USDT and other tokens. The ruling concluded that the purchases discussed in the question were impermissible.
Read the report on the fatwa:
https://www.dawn.com/news/2014389/mufti-taqi-usmani-declares-crypto-based-purchases-impermissible-under-islamic-law
Other International Scholarly Views
Scholars and religious authorities in different countries have also raised concerns about cryptocurrency. Their objections commonly involve speculation, volatility, uncertainty, and the absence of an underlying asset or recognised monetary status.
These positions should be considered in their original context, as rulings may differ depending on the cryptocurrency, transaction, and circumstances being assessed.
New Developments in Pakistan: Two Different Scholarly Positions
Recent developments show that the debate among Pakistani scholars is far from settled.
1. Darul Uloom Karachi – June 2026
A fatwa issued by Darul Ifta, Jamia Darul Uloom Karachi, and signed by Mufti Taqi Usmani and other scholars addressed the use of cryptocurrency to purchase books and an online course.
The fatwa questioned whether cryptocurrencies such as USDT qualify as maal under Shariah and ruled that the purchases described in the question were impermissible.
It is important to understand the scope of this ruling: the reported question concerned purchases made using cryptocurrency, so it should not automatically be presented as a ruling covering every possible crypto-related activity.
Read the report:
https://www.dawn.com/news/2014389/mufti-taqi-usmani-declares-crypto-based-purchases-impermissible-under-islamic-law
2. Saylani Dar-ul-Ifta – Permissibility Under Conditions
Saylani Dar-ul-Ifta, under the supervision of Head Mufti Wasim Akhtar Al-Madani, has taken a different position.
According to a July 2026 report, Saylani had issued a detailed 37-page fatwa approximately 13 months earlier. Its position reportedly permits the purchase and sale of cryptocurrency or digital assets under specified conditions, including compliance with the law and avoidance of prohibited activities.
Saylani has also emphasised that cryptocurrency should not be declared categorically impermissible without a proper technical and Shariah assessment.
Read the report:
https://www.brecorder.com/news/40430231
Note: The links above report on the respective fatwas. Readers should consult the issuing institutions for the complete original documents and their precise conditions.
Pakistan's Changing Regulatory Landscape
Pakistan's regulatory approach to digital assets has also evolved.
In May 2025, the State Bank of Pakistan clarified that its 2018 restrictions on regulated financial institutions dealing with virtual currencies were linked to the absence of a legal and regulatory framework. The clarification did not mean that virtual assets had been declared illegal throughout Pakistan.
Pakistan subsequently enacted the Virtual Assets Act 2026 and introduced a regulatory framework involving the Pakistan Virtual Assets Regulatory Authority (PVARA).
These developments concern the legal and regulatory treatment of digital assets. They do not, by themselves, determine whether cryptocurrency is halal under Islamic law.
Useful official sources:
State Bank of Pakistan clarification (May 2025): https://www.sbp.org.pk/press/2025/Pr-30-May-2025.pdf
Virtual Assets Act 2026: https://staging.na.gov.pk/uploads/documents/69aae92ebf61c_955.pdf
SBP circular on banking arrangements for virtual asset service providers (May 2026): https://www.sbp.org.pk/circulars/bprd-circular-letter-no-10
What Should Muslims Consider Before Investing?
Rather than assuming that all cryptocurrencies are halal or haram, Muslims should consider the specific asset and transaction.
Key questions include:
Does the asset have genuine utility, recognised ownership rights, or a legitimate economic purpose?
Does the transaction involve interest (riba)?
Is the activity primarily gambling or excessive speculation (maysir)?
Does it involve excessive uncertainty (gharar)?
Is the project legitimate, transparent, and compliant with applicable laws?
Has a qualified Shariah scholar assessed the specific asset and transaction?
A cryptocurrency used for a legitimate purpose may raise different Shariah questions from highly speculative trading, leveraged products, or tokens associated with prohibited activities.
Conclusion
There is no universal agreement among Islamic scholars on cryptocurrency. Some consider certain digital assets permissible under defined conditions, while others reject them because of concerns about their status as wealth, uncertainty, speculation, and financial risk.
The recent differences between Darul Uloom Karachi and Saylani Dar-ul-Ifta demonstrate that the discussion remains active in Pakistan.
Muslims should avoid relying on social media claims or blanket statements. Instead, they should examine the specific cryptocurrency, understand how it is being used, and seek guidance from qualified scholars familiar with both Islamic commercial law and the technology involved.
Disclaimer: This article is intended for educational purposes and does not constitute a personal fatwa or investment advice. Readers should consult qualified Shariah scholars regarding their individual circumstances.
