Overview
- Mufti Muhammad Taqi Usmani issued a fatwa on Wednesday declaring trading in Bitcoin, Ethereum and stablecoins haram, saying they involve excessive uncertainty, gambling-like speculation and lack recognised intrinsic value.
- The ruling is a religious opinion and does not change Pakistan’s laws or regulations for digital assets, which remain managed by bodies such as the Pakistan Virtual Assets Regulatory Authority and the Pakistan Crypto Council.
- Market participants reported pockets of selling and liquidations by religious investors in Pakistan and some investors in India and the UAE after the fatwa, though the global crypto market has not seen a broad sell-off tied solely to the ruling.
- Because Mufti Usmani is widely respected in Islamic finance, analysts say the fatwa could dent adoption in Muslim-majority markets if other senior scholars endorse it, potentially slowing remittance and fintech projects that rely on regulated digital assets.
- Pakistan’s year-long effort to attract crypto firms and modernise payments faces a reputational test that will hinge on whether regulators, industry players and other religious authorities can address the Sharia concerns of gharar, maysir and asset legitimacy.