Islamic Scholar Rules Cryptocurrency Transactions Un-Islamic, Declares Purchases of Goods and Services Invalid

Renowned Islamic jurisprudential authority Mufti Taqi Usmani has issued a fatwa stating that acquiring goods or services through cryptocurrency constitutes impermissible transactions under Sharia law. The ruling, endorsed by five additional senior scholars, references expert analyses indicating cryptocurrency lacks recognition as legitimate wealth in Islamic financial principles.

Issued by Darul Ifta, Jamia Darul Uloom, Karachi, on 24 Zilhaj 1447 AH (June 10, 2026), the fatwa specifically addresses queries regarding cryptocurrency purchases. In response to a question about purchasing books via crypto-assets, the ruling emphasized: “Such transactions are invalid, as cryptocurrency does not meet the criteria for ownership in Sharia. These digital assets represent virtual entries rather than tangible value, akin to USDT or similar tokens, which fall outside recognized definitions of wealth.”

The decree further clarified that individuals who acquired items through cryptocurrency are not considered legal owners and must return said goods to their original vendors. Additionally, the fatwa addressed digital educational offerings, stating that courses obtained via cryptocurrency are void and must be deleted from all devices and storage systems, as the underlying transaction violates Islamic law.

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