In a recent article in an Urdu-language daily, Pakistani scholar Dr. Mubashir Husain Rehmani examined several fatwas issued from the leading madrassas in Pakistan and India, saying that shari'a forbids the sale and purchase of cryptocurrencies.
In the article, "The Opinion Of Learned Muftis And Established Dar-ul-Iftas Regarding Cryptocurrency," Dr. Rehmani cited fatwas from Darul Uloom Deoband of India and the Jamia Darul Uloom of Karachi, Pakistan, and urged Muslim youths to refrain from cryptocurrencies.
Following are translated excerpts from the article:[1]
"At The Jamia Darul Uloom Of Karachi, A Fatwa Under The Signature Of Mufti Muhammad Taqi Usmani Has Been Released In Which Cryptocurrency Is Declared Illegitimate In Very Clear Terms"
"In Islamic countries generally, and especially in Pakistan, supporters of cryptocurrencies are, with abandon, affecting the minds of youths and are teaching them that they should invest in cryptocurrencies and earn money sitting at home.
"In this context, they are presenting the trading of cryptocurrencies as a skill. Some people from among them are, by obtaining the sponsorship of cryptocurrencies, growing and propagating cryptocurrency products and services on social media.
"With a heavy heart, we appeal to youths that they should not be caught in the words of such people and refrain from investing in products and services connected with cryptocurrencies and think over their Hereafter instead of worldly losses.
"Regarding cryptocurrencies, most scholars of knowledge and some muftis [those who deliver fatwas or Islamic religious decrees] of Islamic countries, including the Pakistan-India subcontinent, have delivered a clear position and the majority of Ulema [religious scholars] consider cryptocurrencies illegitimate.
"Recently, at the Jamia Darul Uloom of Karachi, a fatwa [religious decree] under the signature of [prominent Islamic religious scholar] Mufti Muhammad Taqi Usmani has been released in which cryptocurrency has been declared illegitimate in very clear terms.
"'According to experts of Tether, USDT, it is fundamentally an entry in a ledger of fake numbers. Only exchange of transaction, sale, and purchase occurs in it and there is no mobi' [goods for sale and purchase] in it. And this entire system has been created to in effect strengthen the cryptocurrency system and the real reason is to promote the business of Bitcoin and other cryptocurrencies.
"'In reality, the computer code of Bitcoin has been taken and its name changed, creating the impression that this cryptocurrency is a new type, in other words Tether, the USDT coin, and the American dollar has been set against every unit (this claim is incorrect according to researchers); in reality, the Bitcoin code is running behind Tether USDT.
"'According to several contemporary Islamic religious scholars, it is not legitimate to buy and sell or arrange business in the current form of cryptocurrency, and its usage is taking place in betting markets. Therefore, in such a situation, the sale and purchase of cryptocurrency or transfer of funds through it cannot be advised.'"
Darul Uloom Deoband Fatwa: "It Is A Form Of Betting And Usury Like Forex Trading... Any Business Running On The Internet In The Form Of Buying And Selling Cryptocurrency... Not Legitimate And Permissible According To Shari'a"
"The text of the fatwa regarding cryptocurrency issued by Darul Uloom Deoband, the mother of madrassas, is presented: 'Whether you call cryptocurrency (Bitcoin, etc.) digital currency or a digital trading thing, it is in reality a fake thing and, like an elephant's teeth, its title is for show.
"'In the light of definition by muftis, Bitcoin or any other cryptocurrency are not goods according to shari'a, neither are its price. Especially, in this business, there is no goods, nor are there [shari'a-based] conditions for agreement.
"'In reality, it is a form of betting and usury, like forex trading. Therefore, any business running on the internet in the form of buying and selling cryptocurrency (Bitcoin or any other digital currency) is not legitimate and permissible according to shari'a. Therefore, it will be illegitimate for any Muslim to invest money in this business according to shari'a' – Reference: Darul Ifta, Darul Uloom Deoband, Answer No. 158329)."
Fatwa By Jamia Darul Uloom Islamia, Binori Town, Karachi: "Bitcoin Is Simply A Fake Currency; The Basic Characteristics And Conditions Of Real Currency Are Not At All Present In It; Therefore, At Present The Business That Is Running On The Internet In The Sale And Purchase Of Coin Or Digital Currency Is Not Halal And Legitimate And Is Simply A Deception"
"Jamia Darul Uloom Islamia, Allama Muhammad Yousuf Binori Town [of Karachi], says about cryptocurrency (Fatwa No. 144406101332)...
"'It is clear that digital currency, cryptocurrency, or Bitcoin has no material existence and is a fake and mathematical thing. Therefore, investment and sale and purchase through it in Pakistan or outside Pakistan is not legitimate.'
"'Bitcoin is simply a fake currency. The basic characteristics and conditions of real currency are not at all present in it. Therefore, at present the business that is running on the internet in the sale and purchase of coin or digital currency is not halal and legitimate and is simply a deception. There is no material substance in it in reality. And there is no passion involved in it and only some numbers arrive in the account. And like forex trading this is a form of usury and betting. Therefore, it is not legitimate to involve in purchase and sale or invest in Bitcoin or any other digital currency' – Reference: 92/2 Baitul Ammar, Karachi).
"Similarly, there is a long list of madrassas and Darul Iftas that consider cryptocurrency illegitimate, namely: Darul Waqf Deoband, Jamia Khairul Madaris of Multan, Jamia Khulafa-e-Rashideen in Maripur of Karachi, etc. In short, there is a clear position of learned muftis and established Darul Iftas regarding cryptocurrency. Therefore, we respectfully appeal to the people and the youths to refrain from cryptocurrency."
[1] Roznama Islam (Pakistan), March 22, 2024.
