Scholarly Ruling Targets Crypto Utility
A new religious decree classifies cryptocurrency as non-wealth, effectively barring its use for digital and physical transactions.
The integration of decentralized digital assets into global commerce has reached a significant impasse as traditional interpretive frameworks move to restrict their utility. A recent fatwa issued by a prominent religious authority has formally deemed the use of cryptocurrency for purchasing goods to be impermissible, challenging the legitimacy of these assets in modern exchange.
Defining the Nature of Digital Assets
The ruling stems from a determination by the Darul Ifta, based at Jamia Darul Uloom in Karachi. The body of scholars, which includes former Federal Shariat Court judge Mufti Taqi Usmani, concluded that cryptocurrency does not meet the necessary Sharia criteria to be classified as maal, or wealth. The decree, dated 24 Zilhaj 1447 AH, or June 10, 2026, argues that these digital tokens are essentially abstract entries rather than tangible assets.
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
Mandatory Reversal of Digital Transactions
The implications of this religious guidance extend beyond theoretical discourse, directly impacting the status of past and future consumer behavior. The ruling explicitly mandates that individuals who have acquired items through crypto-based transactions must take restorative steps, including returning physical goods and deleting digital materials associated with such purchases.
- 24 Zilhaj 1447 AH: The official date of the issuance of the fatwa.
- June 10, 2026: The Gregorian calendar date corresponding to the decree's issuance.
- 5: The number of prominent scholars in addition to Mufti Taqi Usmani who signed the document.
Consequences for the Digital Economy
For businesses and individual users, this ruling introduces a layer of complexity regarding the validity of digital payments. By classifying cryptocurrency as non-wealth, the decree suggests that ownership transfers facilitated by these tokens are legally and religiously void under this framework. This creates a challenging environment for those operating within these legal parameters, as the mandate to delete or return items highlights the conflict between emerging decentralized payment methods and established regulatory or religious governance. Organizations should note the shifting sentiment toward digital assets as these interpretations may significantly influence local market adoption and consumer trust.
