Top Pakistani cleric declares cryptocurrency trading 'haram', issues 'fatwa'

Karachi, Jul 11 (PTI) A leading Pakistani cleric has issued a "fatwa" against trading in cryptocurrencies, declaring it "haram" under Islamic law, in a ruling that comes as the government pushes to regulate and promote the virtual assets sector. The fatwa (religious ruling), issued by Islamic scholar Mufti Muhammad Taqi Usmani, was made public by the Darul Uloom Karachi, one of Pakistan's most respected Sunni Islamic seminaries. Though a fatwa is a religious opinion and not legally binding, it may influence how many Muslims in Pakistan view cryptocurrency trading and investment. According to the seminary, the fatwa has been endorsed by several other Islamic scholars. The ruling covers cryptocurrencies, crypto tokens and stablecoins, and states that such digital assets do not meet the Islamic definition of wealth or property, making their buying and selling impermissible under Shariah. It further states that different terms such as cryptocurrency, virtual currency, token and stablecoin refer to the same category of digital assets, and merely changing the terminology does not alter the religious ruling. The ruling, therefore, applies not only to cryptocurrencies such as Bitcoin and Ethereum but also to blockchain-based tokens and stablecoins, including USDT (Tether). The fatwa comes at a time when the Pakistani government has been actively encouraging the development of the cryptocurrency sector. Last year, the government announced the establishment of the Pakistan Virtual Assets Regulatory Authority to license cryptocurrency exchanges and integrate blockchain technology into the country's financial framework. It has also unveiled a regulatory framework for virtual assets, paving the way for a licensed crypto industry. PTI CORR SCY SCY