'Crypto is haram': Pakistan's leading cleric issues fatwa against digital currency

A leading Pakistani cleric has declared cryptocurrency trading "haram" under Islamic law, issuing a fatwa that comes as the government moves to regulate and promote the country's virtual assets sector.According to the seminary, the fatwa has been endorsed by several other Islamic scholars.The ruling covers cryptocurrencies, crypto tokens and stablecoins, stating that such digital assets do not meet the Islamic definition of wealth or property, making their purchase and sale impermissible under Shariah, as cited by PTI.It further says that terms such as cryptocurrency, virtual currency, token and stablecoin all refer to the same category of digital assets, and that changing the terminology does not alter the religious ruling.As a result, the fatwa applies not only to cryptocurrencies such as Bitcoin and Ethereum, but also to blockchain-based tokens and stablecoins, including USDT.The ruling comes as Pakistan's government is actively seeking to regulate and expand the country's cryptocurrency sector.The fatwa, issued by prominent Islamic scholar Mufti Muhammad Taqi Usmani, was made public by Darul Uloom Karachi, one of Pakistan's most respected Sunni Islamic seminaries.

Although a fatwa is a religious opinion and carries no legal force, it could significantly influence how many Muslims in Pakistan perceive cryptocurrency trading and investment.Last year, the Pakistani government announced the creation of the Pakistan Virtual Assets Regulatory Authority to oversee and license cryptocurrency exchanges and integrate blockchain technology into the country's financial system.It has also introduced a regulatory framework for virtual assets, paving the way for a licensed cryptocurrency industry.