Cryptocurrency Trading Declared Haram by Top Pakistani Islamic Scholar

What happened

A leading Pakistani Islamic scholar issued a fatwa declaring that trading, buying, selling, or holding cryptocurrency is impermissible under Shariah law, labeling the activity as haram for Muslims.

Confirmed

Global impact / market context

The ruling could deter Muslim investors in Pakistan from participating in crypto markets, reducing trading volumes on local exchanges, limiting revenue for crypto service providers, and prompting firms to reassess exposure to Shariah‑sensitive customers.

Analyst inference

Pakistan’s regulators have already expressed caution about digital assets, and the scholar’s fatwa adds a strong religious dimension that may influence policy discussions and shape attitudes in other Muslim‑majority economies.

Analyst inference

What to watch

1. Changes in activity on Pakistani crypto platforms, such as reduced login counts or transaction volumes, which would indicate how the fatwa is affecting user behavior and exchange revenue. Analyst inference
2. Public statements from Pakistani financial authorities responding to the fatwa, which could signal upcoming regulatory measures or guidance for crypto businesses operating in the country. Analyst inference
3. Coverage and commentary from other Islamic scholars or finance bodies on the fatwa, potentially shaping broader religious consensus and influencing investor sentiment across the region. Analyst inference

Evidence

• coinpaper.com