Why Some Cryptocurrencies Are Still Halal — A Response to Mufti Taqi Usmani's Latest Fatwa

Why Some Cryptocurrencies Are Still Halal — A Response to Mufti Taqi Usmani's Latest Fatwa

Thu Jul 16 2026

Why Some Cryptocurrencies Are Still Halal — A Response to Mufti Taqi Usmani’s Latest Fatwa

Published: July 2026 | Reading time: 8 minutes | By MRHB Network Editorial Team | Category: Shariah Views

TL;DR: Mufti Taqi Usmani’s latest fatwa on cryptocurrencies raises important points, but the position that all crypto is impermissible does not account for the full breadth of classical jurisprudential reasoning. The two core issues — whether crypto qualifies as māl (wealth) and whether currency issuance requires state authority — are areas where classical scholars themselves disagreed. This article examines both issues respectfully and argues that the real challenges facing the Islamic crypto industry lie elsewhere.

The Fatwa and Why It Matters

Mufti Taqi Usmani’s latest fatwa on cryptocurrencies raises important points, but I maintain that some cryptocurrencies are halal today. This may seem contradictory, yet it isn’t. The fatwa addresses two key issues — each of which deserves careful examination.

Issue One: Is Cryptocurrency Māl (Wealth)?

The first issue questions whether cryptocurrencies qualify as māl (wealth/property). Mufti Taqi asserts they do not, but I respectfully disagree.

Historically, Muslim jurists have not reached a consensus on the definition of māl, and Shariah has not provided a fixed definition either. This is a true blessing. Imagine if the Qur’an and Sunnah had provided a closed list of what could and could not be considered wealth. Many of today’s assets simply would not fit within it.

Instead, the jurists recognised that māl is largely determined by custom (ʿurf) and what society recognises as having value, albeit within a clear fiqh framework. Given this lack of consensus, I believe many cryptoassets can indeed qualify as māl.

This is not a novel or fringe position. The recognition that custom determines what constitutes wealth is embedded in the methodology of multiple schools of Islamic jurisprudence. It is the same reasoning that allowed paper money, stocks, and intellectual property to be classified as māl in their respective eras — none of which existed when classical definitions were first articulated.

For a deeper examination of how Islamic scholars have engaged with the specific question of Bitcoin’s status as property, including detailed positions from both the prohibition and permission camps, see our comprehensive analysis: Is Bitcoin Halal? What Islamic Scholars Actually Say.

Issue Two: Currency and the Ruler’s Prerogative

The second issue pertains to the legal framework of crypto as a currency. Classical jurists generally agreed that issuing a currency without the ruler’s permission is impermissible if it causes harm to society. The disagreement lies in whether potential harm is sufficient to deem it impermissible.

Some scholars permitted it if no actual harm occurred, while others, including the Malikis, Shafi’is, Hanbalis, and Abu Yusuf from the Hanafi school, prohibited it, viewing currency issuance as a ruler’s prerogative.

We can see echoes of this reasoning in Mufti Taqi’s position. In his latest fatwa, he states that accepting payment in cryptocurrency is contrary to the law and therefore impermissible. He also dismissed Bitcoin as a currency during a lecture in Holland, highlighting that the government does not accept taxes in BTC.

Likewise, during Pakistan’s currency crisis, he ruled that hoarding US dollars to profit from the weakening of the rupee was impermissible because of the harm it caused to the national currency.

At the heart of these opinions is one principle: money in Islam cannot be separated from the public interest, monetary stability, or the legal framework.

This is a legitimate and important principle. But it raises a critical question: in jurisdictions where cryptocurrency is legal, regulated, and operating within a clear legal framework — does this objection still apply? The classical scholars who prohibited private currency issuance did so based on harm. In jurisdictions that have embraced crypto regulation, the harm argument carries different weight.

The Real Challenges Facing Islamic Crypto

Will this fatwa hold back the Islamic crypto industry? I don’t believe so.

The challenges it faces are greater: a lack of patient investment, founders hesitant to collaborate, limited institutional support, regulatory uncertainty, and an investment culture that too often rewards speculation over innovation.

Excellent Islamic crypto projects are already being built in jurisdictions where the legal framework allows them. They deserve far greater support.

The Islamic crypto ecosystem does not need permission from a single fatwa to thrive. What it needs is the same thing any emerging industry needs: capital that is patient, builders who collaborate, institutions that engage rather than observe from a distance, and a market that values substance over speculation.

For a broader understanding of how the ethical standard in Islamic finance goes beyond mere compliance to pursue what is genuinely good — the standard of tayyib — this is the aspiration that projects in this space should be measured against.

What This Means for Muslim Investors

This fatwa does not close the door on halal crypto investing. It opens an important scholarly conversation — one that the community should engage with seriously, not dismiss or accept uncritically.

For Muslim investors, the practical implications are:

  1. Do not rely on any single fatwa. The scholarly landscape on crypto is diverse, with credible positions on both sides. Understand the reasoning, not just the conclusion.

  2. Evaluate projects on their own merits. Even within the permission camp, scholars attach strict conditions — no leverage, no excessive speculation, due diligence, zakat compliance. A project being “crypto” does not make it halal; a fatwa saying “crypto is haram” does not make every project impermissible.

  3. Prioritize projects with rigorous, independent Shariah governance. The credibility of a project’s Shariah board, their methodology, and their ongoing oversight matters far more than any external fatwa.

  4. Consider jurisdiction. Mufti Taqi’s position is heavily influenced by the legal framework argument. In jurisdictions where crypto is regulated and legally recognized, this argument carries different weight.

Screening tools like Halalytix — which evaluates assets for Shariah compliance before they appear in Sahal Wallet — represent how this screening process can be operationalized at scale, giving investors a systematic framework rather than relying on individual fatwas alone.

For a comprehensive overview of the halal crypto projects currently operating with Shariah governance, see our guide to halal crypto projects and platforms.

The Bigger Picture

The debate between Mufti Taqi Usmani’s position and those who maintain crypto’s permissibility is not a weakness of Islamic jurisprudence. It is how the tradition has always handled new developments — through rigorous, principle-based reasoning that allows for legitimate disagreement.

The same intellectual tradition that produced four major schools of jurisprudence — each with different methodologies and sometimes different conclusions on the same question — is now grappling with digital assets. This is ijtihad in action.

What matters is not whether one scholar says halal and another says haram. What matters is whether the reasoning is rigorous, the principles are applied consistently, and the conclusions serve the public interest that Islamic law has always sought to protect.

The Islamic crypto industry’s future will not be determined by any single fatwa. It will be determined by whether the builders in this space can deliver products that are genuinely useful, genuinely ethical, and genuinely aligned with the principles that make Islamic finance a distinct and valuable tradition.

That is the standard worth holding — and the one that MRHB Network and the broader halal crypto ecosystem must be measured against.

Frequently Asked Questions

What did Mufti Taqi Usmani’s fatwa actually say about crypto?

The fatwa addresses two issues: first, that cryptocurrency does not qualify as māl (wealth/property) in Islamic law; second, that accepting payment in cryptocurrency is contrary to the law because currency issuance is a ruler’s prerogative. He also dismissed Bitcoin as a currency, noting that governments do not accept taxes in BTC.

Does this fatwa make all cryptocurrency haram?

No. Mufti Taqi Usmani’s position is one among several scholarly positions. Other credible scholars — including Mufti Muhammad Abu-Bakar, Mufti Faraz Adam, the Securities Commission Malaysia, and the Fiqh Council of North America — have concluded that cryptocurrency can be permissible under specific conditions. The scholarly landscape is diverse, and no single fatwa is binding on all Muslims.

Is cryptocurrency considered māl (wealth) in Islamic law?

This is debated. Muslim jurists historically did not reach consensus on the definition of māl. The classical framework recognizes that what constitutes wealth is largely determined by custom (ʿurf) — what society recognizes as having value. Given that millions transact in crypto and major institutions accept it, many scholars argue cryptoassets qualify as māl under this framework.

What is the ruler’s prerogative argument?

Classical jurists generally agreed that issuing currency without the ruler’s (state’s) permission is impermissible if it causes harm. However, scholars disagreed on whether potential harm alone is sufficient for prohibition, or whether actual harm must be demonstrated. In jurisdictions where crypto is legal and regulated, this objection carries different weight.

Should Muslim investors ignore this fatwa?

No. The fatwa raises legitimate concerns that deserve serious engagement. However, investors should understand the reasoning behind multiple scholarly positions, evaluate projects on their own Shariah governance merits, and consider the legal framework of their jurisdiction. Relying on any single fatwa — for or against — is insufficient due diligence.

What are the real challenges facing the Islamic crypto industry?

Beyond scholarly debate, the industry faces a lack of patient investment, founders hesitant to collaborate, limited institutional support, regulatory uncertainty, and an investment culture that too often rewards speculation over innovation. These structural challenges are more consequential than any single fatwa.