Is Crypto Allowed for Muslims? Pakistan Debates Bitcoin and Islamic Law

Pakistan’s crypto industry is facing a major Shariah debate after top Islamic scholars issued conflicting rulings on Bitcoin and digital assets. A June fatwa led by Mufti Taqi Usmani declared purchases of Bitcoin, stablecoins, and other tokens impermissible, arguing they are not real wealth. The stance could weigh on adoption in one of the world’s most active crypto markets, ranked third globally for grassroots adoption by Chainalysis. However, other scholars, including Saylani’s Wasim Akhtar Al-Madani, say crypto can be permissible if it is a recognized right, lawfully traded, and not tied to illegal activity. Regulators are trying to split speculative tokens from asset-backed assets such as gold-backed tokens, fully reserved stablecoins, and blockchain-based sukuk. The disagreement matters because Pakistan is trying to build a regulated digital-asset framework and expand crypto ties internationally, while a stricter religious verdict could slow bank participation and broader market growth.