Pakistan’s top Islamic scholar has declared crypto trading haram under Islamic law. Mufti Muhammad Taqi Usmani issued the fatwa in June 2026. Scholars affiliated with Darul Uloom Karachi shared the ruling online soon after. According to the announcement, it covers cryptocurrencies, crypto tokens, and stablecoins alike.

The fatwa concludes that digital currencies do not meet the Islamic definition of wealth or property. Therefore, buying and selling them is considered impermissible. The ruling states that cryptocurrency itself does not count as wealth. Consequently, purchasing any crypto token or stablecoin, including USDT, falls outside what Islamic law permits.

The scholars also addressed how these assets get labeled. Various terms, including virtual currency, token, and stablecoin, all describe the same underlying category. As a result, the ruling applies equally across every version of digital currency. The fatwa makes clear that renaming an asset does not change its religious status.

This means the ruling stretches well beyond well-known coins like Bitcoin and Ethereum. Instead, it extends to blockchain-based tokens and stablecoins such as USDT. Furthermore, the fatwa carries the backing of several religious scholars connected to Darul Uloom Karachi. The institution supervised the entire process before the ruling went public.

Still, the fatwa remains a religious opinion rather than a binding state law. However, it may still shape how many Muslims in Pakistan approach cryptocurrency trading and investment. Religious guidance often carries significant weight among practicing Muslims, especially on matters tied to personal finance. Therefore, this ruling could influence trading behavior even without any legal enforcement behind it.

Pakistan has seen growing interest in cryptocurrency in recent years, despite an unclear regulatory environment. Meanwhile, discussions around crypto trading haram rulings are likely to continue as digital assets gain more attention. Finally, investors and religious communities alike will be watching closely to see how this guidance shapes future conversations around digital finance in the country.