Mufti Muhammad Taqi Usmani, president of Wifaq-ul-Madaris Al-Arabia Pakistan and Darul Uloom Karachi, has issued a fatwa declaring that purchasing goods with cryptocurrency is not permissible under Islamic law (Shariah). The ruling is based on consultations with experts, concluding that cryptocurrency does not qualify as maal (property or wealth) but is merely a record of numerical values in an account.
In a significant development, Mufti Usmani clarified that transactions involving any crypto tokens, including USDT (Tether), are not allowed for buying goods. His son, Hassan Usmani, confirmed the authenticity of the fatwa circulating on social media, affirming it was indeed issued by Mufti Usmani himself.
The fatwa was prompted by a question regarding the religious validity of purchases made using cryptocurrency. The questioner explained that he had bought two books from an individual, one paid with a crypto token and the other with USDT, seeking guidance on whether these transactions were acceptable under Islamic law and what actions to take if they were not.
Additionally, the questioner inquired about the permissibility of buying an educational course from someone unauthorized to sell it. The original course owner had prohibited copying, retaining, or reselling the material, but the unauthorized seller had made copies available and sold them using cryptocurrency. The course was distributed digitally through a group created by the seller, who added buyers after receiving payment.
The fatwa advised the individual to return the books purchased with cryptocurrency, as such transactions are impermissible. Similarly, acquiring the educational course in this manner was also ruled unlawful and not allowed under Shariah. The ruling instructed the questioner to refrain from benefiting from the course and to permanently delete the digital content.
