The Prohibition of Cryptocurrency in Pakistan and its Justification under Sharia
Keywords:
Crypto currency, Shari᾿ah, Maysir, Gharar, PakistanAbstract
Because of its increased security, transparency, and reduced transaction fees, blockchain-based cryptocurrencies are seen as an innovation in the financial sector. As the cryptocurrency is decentralized and unregulated, it is unstable in terms of value, vulnerable to hacking attacks, anonymous, and often used for illegal activities. The use of cryptocurrency is restricted in Pakistan by the State Bank of Pakistan (SBP). However, studies show that bitcoin trade is increasing in Pakistan. At the same time, the people involved in bitcoin trading were being looked at by the Federal Investigation Agency. Fatawa issued by various madrasas in Pakistan were also accessed. The study concluded that the SBP's decision to restrict cryptocurrencies is consistent with Sharia law.
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