Pakistan’s Crypto Regulator Calls for Shariah Dialogue After Scholar Backs Ruling Against Crypto Purchases

Pakistan Virtual Assets Regulatory Authority (PVARA) chairman Bilal bin Saqib has urged continued dialogue on how digital assets should be treated under Islamic law following a meeting with prominent scholar Mufti Taqi Usmani, who backed a ruling against purchases made with crypto. According to Cointelegraph, Saqib said the discussion covered blockchain technology, digital assets, stablecoins and tokenized real-world assets (RWAs), alongside the need to protect Pakistanis from fraud, exploitation and financial harm. Saqib argued that different categories of digital assets require “careful technical assessment alongside rigorous Shariah examination, rather than being viewed through a single lens.” He did not directly dispute the ruling’s conclusion, but emphasized the importance of ongoing engagement among scholars, regulators and industry participants to clarify distinctions across digital-asset types and their use cases. The exchange underscores the challenge Pakistan faces as it seeks to develop a regulated crypto market while navigating religious objections that may influence public acceptance in a country where 231.7 million people, or 96.35% of the population, identified as Muslim in the 2023 census.

The religious scrutiny comes as Pakistan advances a formal framework for virtual assets after years of restrictions. According to Pakistani newspaper Dawn, Usmani and five other scholars signed an Islamic legal ruling issued by Jamia Darul Uloom Karachi on Friday. The ruling reportedly stated that purchases made with crypto, including stablecoins such as USDT, were not permitted because digital tokens did not qualify as recognized property or wealth under their interpretation of Islamic law. Saqib said he told Usmani that blockchain, digital assets, stablecoins and tokenized RWAs represent a broad range of technologies and applications, reinforcing his view that regulatory and religious assessments should consider these categories separately. The debate unfolds as Pakistan transitions toward a licensed virtual-asset sector: on April 15, the State Bank of Pakistan allowed banks to open accounts for virtual asset service providers (VASPs) licensed by the PVARA, ending an eight-year restriction on regulated institutions dealing with crypto. The move followed the passage of Pakistan's Virtual Assets Act 2026 in March, which established PVARA as the statutory body responsible for licensing and oversight of virtual asset activities.