Pakistan's Crypto Sector Faces Islamic Scrutiny Over Fatwa on Digital Assets

Pakistan's Bitcoin and cryptocurrency trading sector is facing scrutiny from Islamic scholars following a fatwa issued by Mufti Muhammad Taqi Usmani. The ruling deems crypto trading and investment impermissible under Shariah law, citing concerns over speculative risks and uncertainty.

The fatwa, released through the Darul Uloom Karachi seminary, asserts that digital assets such as Bitcoin, Ethereum, USDT, and other tokens fail to meet core Shariah criteria for legitimate wealth or property. As a result, activities involving their purchase, sale, or use in transactions are viewed as not aligned with Islamic teachings.

The decree has sparked debate among Pakistani Muslims, economists, regulators, and crypto enthusiasts. Some argue that it protects believers from speculative risks, while others see potential for blockchain innovation to drive economic growth and financial inclusion.