Can Muslims buy Bitcoin? Top Islamic scholars in Pakistan disagree on whether crypto follows Shariah, Islamic law.
The fighting is far from the mosque. Pakistan is one of the world’s largest crypto markets, and its government wants to lead the way in the digital world.
Why Pakistan’s Crypto Shariah Debate Is Important
On June 10, Jamia Darul Uloom Karachi, a religious institution, issued a religious decree. Mufti Taqi Usmani and other great scholars signed it.
Regulators prohibit purchases made with Bitcoin (BTC), stablecoins, and other digital tokens. It calls them “just drawing fake numbers into accounts.”
That decision is heavy. Mufti Usmani advises Meezan Bank, Pakistan’s second largest lender by market value, on Shariah. In his view, crypto does not count as real wealth, or maal, under Islamic law.
His words have already moved the markets. In 2008, they ruled that up to 85% of sukuk, or Islamic bonds, failed the Shariah test. Global sukuk issuance fell from $50 billion to about $15 billion a year, even as the financial crisis worsened.
The audience this time is bigger. Pakistan ranks third in the world in crypto adoption, behind India and the US, according to Chainalysis.
Times are tough for government. Pakistan has used crypto to build relations with US President Donald Trump, who $1 billion crypto currency he looked.
- Ministry of Finance of Pakistan he agreed in January to see World Liberty’s USD1 stablecoin.
- PVARA chief Bilal bin Saqib, 35, said Bloomberg The crypto push also built trust with Washington.
- Investigators said Al Jazeera Their stablecoin partnership was paying for the Trump White House.
Trump’s platform, World Liberty Financial, signed a no-build agreement with Pakistan this year.
India’s central bank, meanwhile, wants to move forward at home excluding banks from crypto together.
Some Muslim Leaders Say Crypto Is Halal, With Conditions
Saylani Welfare International Trust, one of Pakistan’s largest charities, disagrees. Its grand mufti, Wasim Akhtar Al-Madani, issued a 37-page fatwa about 13 months ago.
They see crypto as a recognized right, not a common asset. This week, Saylani held an emergency meeting in Karachi to agree to the decision.
“Buying and selling cryptocurrencies or digital assets can be considered legal as a public right, as long as such sales are not prohibited by the law of the country and do not expose a person to illegal embarrassment, punishment or legal consequences,” Al-Madani cited the fatwa in a. words.
Saylani has sent it to the Council of Islamic Ideology and the State Bank of Pakistan.
Pakistan’s crypto regulator is now in the middle. Bilal bin Saqib is the chairman of Pakistan Virtual Assets Regulatory Authority (PVARA). Lawmakers made it legal in July 2025 and blocked it by law this year. Saqib asked Jamia Darul Uloom to conduct a separate transaction between speculative tokens and asset-backed tokens.
He pointed to blockchain-based sukuk, gold-backed tokens, and secure stablecoins. Each gives its owner a say in the real thing. A distinction is needed if tokenized real assets crossed $60 billion and stablecoins took a hit record volumes per month.
“The main question that the fatwa raises is whether the digital economy constitutes a legitimate asset under the Shariah. That is the right question, and that is why these instruments must be tested individually,” Saqib said. comments to Reuters.
He met Usmani last week and called the news encouraging.
Waqas Ghani, head of research at JS Global Capital, said the fatwa could limit the adoption of crypto by banks. Sales volumes, however, appear stable so far.
How Some Muslim Countries Regulate Crypto
The partition of Pakistan reflects a deep division among Muslims. Major countries have come to different conclusions on the same question.
Malaysia is sitting at the end of the spectrum. The Securities Commission’s Shariah Advisory Council to be terminated in 2020 that digital assets are counted as maal and can trade on registered exchanges.
Gulf takes a pragmatic approach. Dubai and Abu Dhabi license crypto companies that are under dedicated regulators and courts to Shariah-compliant products, without religious judgment.
The Ulema Association in Indonesia went another way in 2021. They he announced crypto haram as a currency, allowing trading only in tokens with clear assets.
Grand Mufti of Egypthe ruledin 2017 that all crypto activities were banned, for examplegambling. Turkey’s religious authority has expressed similar skepticism, and the country still allows transactions while banning crypto payments.
Pakistan is at the heart of the game. Usmani’s decision is similar to that of Egypt and Indonesia, while the economic-backed PVARA refers to the Malaysian and Gulf countries.
The next move is for professionals. Their response may decide how far Pakistan’s push for a halal digital economy can go.
A note Is Crypto Permissible For Muslims? Pakistan opposes Bitcoin and Islamic Law appeared for the first time BeInCrypto.
