Fatwa classifies major cryptocurrencies as haram
Darul Ifta, the religious edict body attached to Jamia Darul Uloom Karachi, issued a formal fatwa on June 10, 2026 declaring cryptocurrencies including Bitcoin (BTC), Ether (ETH), and the stablecoin USDT to be haram, according to a July 12 report by TheBlock cited in ABMedia.
The ruling was led by Pakistani Islamic scholar Mufti Muhammad Taqi Usmani and co-signed by five other scholars. The report said the decision creates a clear gap with Pakistan’s recent legislative push under the Virtual Assets Act 2026.
Why the ruling rejected BTC, ETH and USDT
According to the fatwa, Usmani’s team argued that digital assets such as BTC, ETH, and USDT do not satisfy Shariah definitions of “wealth” and “property.” On that basis, the ruling said they should not be treated as asset classes that can be lawfully traded.
Darul Ifta operates under Jamia Darul Uloom Karachi, which the report described as one of Pakistan’s most authoritative Islamic schools. Usmani also leads both Wifaq-ul-Madaris Al-Arabia Pakistan and Darul Uloom Karachi.
The report added that Usmani is one of the most influential scholars in Islamic finance globally and has previously taken part in setting Shariah-compliant banking standards used in multiple countries.
PVARA calls for continued dialogue
After the fatwa was issued, Pakistan Virtual Assets Regulatory Authority Chairman Bilal Bin Saqib visited Usmani’s institution and met with his team to discuss how crypto assets should be treated under Shariah.
In a statement after the meeting, PVARA said it wanted ongoing dialogue among regulators, Islamic scholars, and the industry so blockchain and digital assets could receive what it called proper Shariah compliance assessment rather than wholesale rejection.
PVARA derives its authority from the Virtual Assets Act 2026, signed in 2026. The law authorizes the agency to license cryptocurrency exchanges and token issuers. The report said the framework itself was presented around Shariah compliance, with license applicants required to pass review by an Islamic finance committee.
Pakistan ranks third in Chainalysis adoption index
Chainalysis ranked Pakistan third worldwide in its 2025 Global Crypto Adoption Index, according to the report. By mid-2026, the country had about 40 million digital asset users, equal to roughly one in every six Pakistanis having had exposure to crypto assets.
TheBlock did not comment on the timing of any follow-up legislation or regulation, and the report did not provide direct data on the fatwa’s impact on domestic crypto trading volumes.
