Question:
Is it prohibited to eat shrimp?
Answer: حامدا ومصليا ومسلما
Fish is the only aquatic animal that is permissible for consumption according to the Hanafees. No other aquatic animal is permissible. The scholars that consider shrimp a fish say it is permissible to eat it, while those who do not consider it a fish say it not permissible to consume it. Caution (Ihtiyaat) is in this (second) opinion. (adopted from Fatawa Mahmodiyyah 5/120-123)
And Allah Ta’ala knows best.
(Hazrat Mufti) Ahmed Khanpuri (May Allah preserve him)
Mahoodul Fatawa 5/657-658
N.B. Those that consider shrimp “makrooh” are scholars who consider it a fish. The reason they don’t classify it as “fully halal” is to discourage people from eating it since other scholars are of the opinion that it is not a fish.
الخروج من الاختلاف مستحب