Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib called for digital assets to be assessed individually under Islamic law on Saturday after meeting with Mufti Taqi Usmani, a prominent Islamic scholar whose fatwa broadly rejected cryptocurrency purchases. Saqib said the discussion addressed a fatwa issued June 10 that declared cryptocurrencies do not qualify as wealth under Sharia law. The meeting occurred as Pakistan develops its regulatory framework for digital assets following parliament's passage of the Virtual Assets Act in March.
Saqib said the two agreed on the need to protect Pakistanis from fraud, exploitation, and financial harm. He argued that blockchains, stablecoins, tokenized real-world assets and other digital assets represent different technologies and use cases that should not be evaluated as a single category. Saqib stated in an X post that these technologies merit careful technical assessment alongside rigorous Shariah examination rather than being viewed through a single lens. Saqib did not say that Usmani had revised his position following the meeting.
Fatwa Issued June 10 Declares Crypto Purchases Impermissible
The fatwa circulated on Friday was issued June 10 by Usmani and several other scholars affiliated with Darul Ifta at Jamia Darul Uloom Karachi. The ruling said cryptocurrencies do not qualify as maal, or wealth, under Sharia and described them as fictitious numerical entries recorded in an account. The fatwa explicitly applied its reasoning to USDT and other crypto tokens.
In response to questions involving books and an online course purchased using cryptocurrency, the scholars said the transactions were invalid and that the buyer did not acquire lawful ownership of the products. It directed the purchaser to return the books and delete the course materials rather than use or transfer them. The ruling's inclusion of both physical goods and digital services gives it a broader scope than a prohibition limited to speculative crypto trading.
PVARA Emphasizes Technology-Specific Assessment Approach
Saqib called for continued engagement among religious scholars, regulators and industry experts as Pakistan develops its approach to emerging financial technology. The dispute has direct implications for Pakistan's developing crypto framework. Firms seeking licenses must ensure their services comply with Sharia law under the guidance of a committee of Islamic finance scholars.
That process could allow regulators to distinguish between instruments such as unbacked cryptocurrencies, fiat-backed stablecoins and tokenized securities. The fatwa, by contrast, treated USDT alongside other crypto tokens when assessing whether cryptocurrency constitutes recognizable wealth. The disagreement turns partly on whether products using blockchain infrastructure can be separated according to their underlying assets and economic functions for the purposes of Islamic finance.
Pakistan Parliament Passed Virtual Assets Act in March
Pakistan's parliament passed the Virtual Assets Act in March, making PVARA a permanent federal regulator with powers to license exchanges, custodians and token issuers. PVARA previously invited regulated international crypto firms to apply for local licenses, citing an estimated 40 million users in the country.
Pakistan has rapidly expanded its digital asset plans since early 2025. Saqib has separately said Pakistan plans to launch a sovereign stablecoin. The government previously announced plans for a state-held bitcoin reserve and allocated 2,000 megawatts of electricity for bitcoin mining and artificial intelligence data centers.
Binance and HTX Received Preliminary Clearances in December
Binance and HTX received preliminary clearances in December, although neither clearance permitted the exchanges to begin operating. The Finance Ministry also signed a non-binding agreement for Binance to advise on tokenizing up to $2 billion in sovereign bonds, treasury bills and commodity reserves.
Saturday's discussion signals that the religious classification of those products may become an important part of how, and whether, those initiatives proceed.
FAQ
What did Pakistan's crypto regulator discuss with Mufti Taqi Usmani on Saturday?
Pakistan Virtual Assets Regulatory Authority Chairman Bilal bin Saqib met with Mufti Taqi Usmani on Saturday to discuss digital assets and their Sharia status. Saqib called for digital assets to be assessed individually under Islamic law rather than as a single category. The two agreed on the need to protect Pakistanis from fraud, exploitation, and financial harm.
What did the fatwa issued June 10 say about cryptocurrency purchases?
The fatwa issued June 10 by Mufti Taqi Usmani and other scholars declared cryptocurrencies do not qualify as wealth under Sharia law. The ruling explicitly applied to USDT and other crypto tokens. It stated that purchases made using cryptocurrency were invalid and that buyers did not acquire lawful ownership of products, directing them to return physical goods and delete digital materials.
When did Pakistan pass the Virtual Assets Act?
Pakistan's parliament passed the Virtual Assets Act in March. The act made PVARA a permanent federal regulator with powers to license exchanges, custodians and token issuers. Firms seeking licenses must ensure their services comply with Sharia law under the guidance of a committee of Islamic finance scholars.
