Pakistan’s Islamic scholars remain divided on cryptocurrency and senior scholar Mufti Muneeb-ur-Rehman wants that ambiguity understood clearly. In a recent interview, he clarified that he has not issued a final religious ruling (fatwa) declaring cryptocurrency either permissible or impermissible, even as another leading scholar, Mufti Muhammad Taqi Usmani, has already issued a fatwa declaring crypto transactions impermissible.
Key Takeaways
- Mufti Muneeb-ur-Rehman’s position: No final fatwa issued on cryptocurrency’s Islamic status
- His general investment guidance: Muslims should invest only in businesses free of alcohol, pork, narcotics, and other prohibited activities
- His method: Islamic scholars apply “Shariah screening” to assess whether modern, complex financial instruments are permissible
- His view on gold trading: Considers it impermissible
- Contrasting ruling: Mufti Muhammad Taqi Usmani, in a fatwa dated June 10, 2026, declared cryptocurrency transactions impermissible, concluding digital assets do not qualify as “maal” (wealth) under Shariah
- Timing: The clarification lands as Pakistan finalizes its first cryptocurrency taxation framework for Finance Bill 2026-27, targeting an estimated 9 million crypto users nationwide
What Mufti Muneeb-ur-Rehman Actually Said
Responding to a question on Islamic investing, Mufti Muneeb-ur-Rehman was direct about one thing: he has not issued a definitive fatwa on cryptocurrency, in either direction. Rather than making a blanket ruling, he laid out the general investment principle Muslims should follow restricting investment to businesses and industries free from prohibited (haram) activities, specifically naming alcohol, pork, and narcotics as clear disqualifiers.
He explained that modern financial markets have grown too complex for simple case-by-case judgment, which is why Islamic scholars rely on Shariah screening a structured methodology used to evaluate whether a given investment, business, or financial instrument meets Islamic principles before it can be considered permissible.
Notably, he was far more decisive on a different topic: gold trading. Mufti Muneeb reiterated his existing position that gold trading, in his view, is not permissible a stance he stated without the same hesitation he showed on cryptocurrency.
Why This Clarification Matters Right Now
Mufti Muneeb’s comments don’t exist in isolation they land in the middle of an active, unresolved religious debate over crypto’s status in Pakistan, and his statement functions as a notable point of contrast rather than a standalone opinion.
Just days earlier, Mufti Muhammad Taqi Usmani president of Wifaq-ul-Madaris Al-Arabia Pakistan and Darul Uloom Karachi, and one of the most respected Islamic finance scholars in the world issued a fatwa, dated June 10, 2026, declaring that cryptocurrency, crypto tokens, and stablecoins (including USDT) do not qualify as “maal” (wealth or property) under Shariah. Because they fail this fundamental test, his ruling concluded that buying, selling, or transacting in any of them is not permissible, regardless of what the digital asset is called.
Mufti Muneeb’s clarification that he has issued no comparable final ruling highlights something important for ordinary Muslims trying to navigate this question: there is no single, settled Islamic position on cryptocurrency, even among Pakistan’s most senior scholars. One prominent scholar has ruled decisively against it; another, equally senior, has explicitly declined to issue a final verdict either way.
The Core Disagreement: What Counts as “Wealth”?
At the heart of the crypto debate is a specific concept in Islamic jurisprudence: maal, generally understood as property or wealth that has tangible value and is recognized as such in customary usage. Mufti Taqi Usmani’s fatwa concluded that cryptocurrency fails this test entirely, describing it as merely “the recording of fictitious numbers in an account” rather than genuine wealth meaning transactions built on it cannot be considered valid under Shariah.
Mufti Muneeb-ur-Rehman’s more measured position declining to issue a final ruling implicitly acknowledges that this question isn’t settled even within Pakistan’s own scholarly community, let alone the wider global Islamic finance world. Other authoritative bodies have taken varying stances over the years: Egypt’s Dar al-Ifta ruled against Bitcoin as far back as 2018 citing speculation and lack of intrinsic value, a position that has itself been contested by other scholars, while some markets with sophisticated Islamic finance sectors, such as the UAE, have taken a notably different regulatory and religious approach.
Why the Timing Is Significant
This religious debate is unfolding at a delicate moment for Pakistan’s government. Officials are currently designing the country’s first cryptocurrency taxation framework, intended for inclusion in Finance Bill 2026-27, aimed at bringing Pakistan’s estimated 9 million crypto users reportedly the sixth-largest crypto-adopting population in the world into the formal tax and documentation system.
A major fatwa declaring crypto transactions impermissible complicates that effort. In a country where religious rulings carry substantial social weight, a decisive verdict from a scholar of Mufti Taqi Usmani’s stature creates a genuine dilemma for millions of practicing Muslims who already hold or trade digital assets one each individual now has to navigate according to their own conscience, even as the state moves in a parallel direction to formally regulate and tax the same activity.
What Shariah Screening Means for Halal Investing More Broadly
Mufti Muneeb’s explanation of Shariah screening is useful context beyond the crypto question specifically. The process generally involves scholars and Islamic finance experts assessing:
- Whether the core business activity itself is permissible (excluding sectors like alcohol, gambling, pork production, and conventional interest-based finance)
- Whether financial ratios and revenue sources meet accepted purity thresholds
- Whether the structure of the investment itself not just the underlying business complies with Islamic contractual principles
This is the same general framework increasingly relevant to Pakistan’s growing menu of Islamic financial products, including SECP’s newly launched ESG Mutual Funds Framework and the continued expansion of Islamic banks like Meezan Bank and BankIslami all of which depend on some version of this screening process to certify a product as Shariah-compliant.
Frequently Asked Questions
Has Mufti Muneeb-ur-Rehman declared cryptocurrency haram or halal?
Neither. He has clarified that he has not issued a final, definitive fatwa on cryptocurrency’s Islamic permissibility.
What did Mufti Muneeb say about halal investing generally?
He said Muslims should invest only in businesses free from prohibited activities such as alcohol, pork, and narcotics, and that scholars use Shariah screening to evaluate modern, complex financial instruments.
What is Mufti Muneeb’s position on gold trading?
He reiterated his view that gold trading is not permissible.
Has any senior Pakistani scholar issued a final ruling on cryptocurrency?
Yes. Mufti Muhammad Taqi Usmani issued a fatwa, dated June 10, 2026, declaring that cryptocurrency, crypto tokens, and stablecoins do not qualify as wealth (“maal”) under Shariah, making related transactions impermissible.
Is there scholarly consensus on cryptocurrency in Islam?
No. Views differ even among senior Pakistani scholars, and globally, positions have varied across institutions such as Egypt’s Dar al-Ifta and regulators in markets like the UAE.
Why does this debate matter for Pakistan’s government right now?
Pakistan is developing its first cryptocurrency taxation framework for Finance Bill 2026-27, aimed at bringing an estimated 9 million crypto users into the formal tax system — a process complicated by an active, unresolved religious debate over crypto’s permissibility.
