Scholarly Ruling Targets Crypto Utility

A formal fatwa issued by the Darul Ifta, Jamia Darul Uloom, Karachi, has introduced a significant theological restriction on the use of digital assets for commerce. The ruling, dated 24 Zilhaj 1447 AH (June 10, 2026), posits that transactions involving cryptocurrency are invalid because the assets do not meet the criteria for "wealth" within Sharia.

Defining Status of Digital Assets

The guidance, authored by Mufti Taqi Usmani, a former judge of the Federal Shariat Court, alongside five other scholars, centers on the classification of crypto tokens. The document explicitly characterizes these assets as a series of fictitious numbers rather than tangible wealth. Consequently, the scholars have argued that any exchange of goods for these tokens fails to establish legal ownership in the eyes of the institution.

According to research and opinion of experts so far, cryptocurrency is not considered ‘maal’ (wealth) in Sharia. Instead, it is merely the recording of fictitious numbers in an account, whether in the form of USDT or other crypto tokens.

— Darul Ifta, Jamia Darul Uloom, Karachi

Mandated Returns for Digital Purchases

The ruling extends beyond general theory to specific directives for consumers who have already engaged in such transactions. For physical goods like books, the fatwa dictates that because the purchaser has not technically acquired ownership, the transaction is void. The directive explicitly mandates that individuals must return these items to the original seller.

Digital content, including educational courses, faces even stricter requirements. Because these products remain accessible to the seller despite the transaction, the scholars have ordered that users must cease all use of such materials and perform a complete deletion of the data from their devices.

• Date of fatwa: 24 Zilhaj 1447 AH (June 10, 2026)
• Signatories: Mufti Taqi Usmani and five other scholars
• Key classification: Cryptocurrency is not considered 'maal' (wealth)

Consequences for Market Participants

For individuals and entities operating within these specific legal and religious parameters, the interpretation creates a binary outcome regarding the legitimacy of digital asset usage. By labeling the assets as non-existent in terms of Sharia-compliant ownership, the ruling potentially complicates the acquisition of both physical products and digital services for those who look to the Darul Ifta for guidance. The insistence on returning goods and deleting digital files illustrates the depth of the non-recognition of these transactions by the issuing body.