Transactions in cryptocurrency are not Shariah-compliant, fatwa of Mufti Taqi Usmani

This information was reported in a report by Pakistani media The News on Thursday (July 9).

Mufti Taqi Usmani currently serves as the president of the country's Qawmi Madrasa Education Board Wifaq-ul-Madaris Al-Arabia Pakistan and Jamia Darul Uloom Karachi.

In the fatwa issued by him, it is stated that for something to be considered lawful wealth (mal) from the perspective of Islamic Shariah, certain conditions must be met. Since currently prevalent cryptocurrency fails to meet those conditions, it cannot be considered lawful wealth.

The fatwa further mentions that based on reviewing the opinions and research of various experts on this matter, it has been observed that there is no Shariah-recognized real asset behind cryptocurrency. Rather, it is essentially a collection of some virtual numbers stored in digital accounts, which is not suitable for being considered an independent asset.

For this reason, the fatwa has opined that buying and selling goods or services through cryptocurrency and such transactions are not Shariah-compliant.