Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib has called for sustained dialogue between Islamic scholars, regulators, and industry stakeholders to clarify the Shariah-compliant status of various digital assets. This follows a recent meeting with prominent Islamic scholar Mufti Taqi Usmani, who endorsed a fatwa declaring cryptocurrency purchases—including those made with stablecoins like USDT—as impermissible under Islamic law.
According to Cointelegraph, Saqib emphasized that blockchain technology, digital assets, stablecoins, and tokenized real-world assets (RWAs) represent distinct categories requiring individualized technical and Shariah assessments. "Rather than viewing all digital assets through a single lens, we must conduct careful technical evaluations alongside rigorous Islamic jurisprudence," he stated.
Saqib did not directly challenge the ruling issued by Jamia Darul Uloom Karachi—which was co-signed by Usmani and five other scholars—but stressed the importance of ongoing engagement to differentiate use cases across the digital asset spectrum. The fatwa asserts that cryptocurrencies do not constitute recognized property or wealth under their interpretation of Shariah, thereby prohibiting their use in transactions.
The religious scrutiny comes as Pakistan moves to establish a formal regulatory framework for virtual assets after years of restrictions. On April 15, the State Bank of Pakistan permitted licensed banks to open accounts for Virtual Asset Service Providers (VASPs) authorized by PVARA, ending an eight-year ban on regulated financial institutions engaging with crypto-related entities.
This policy shift follows the enactment of the Virtual Assets Act 2026 in March, which formally established PVARA as the statutory authority responsible for licensing and overseeing virtual asset activities in the country.
The debate highlights the delicate balance Pakistan must strike as it seeks to foster a regulated crypto market while addressing religious concerns in a nation where over 96% of its 231.7 million population identifies as Muslim, according to the 2023 national census.