Continued Dialogue on Digital Assets and Islamic Law: PVARA Chairman’s Meeting with Mufti Taqi Usmani

Pakistan’s Crypto Landscape: Dialogue on Digital Assets Under Islamic Law Intensifies

In a significant development for Pakistan’s burgeoning cryptocurrency sector, Bilal bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), has emphasized the importance of ongoing dialogue regarding the treatment of digital assets under Islamic law. This call for discussion follows a meeting with renowned Islamic scholar Mufti Taqi Usmani, who recently endorsed a ruling that prohibits purchases made with cryptocurrencies.

In a post shared on Saturday, Saqib outlined the key topics of their discussion, which included blockchain technology, digital assets, stablecoins, and tokenized real-world assets (RWAs). He underscored the necessity of safeguarding Pakistani citizens from fraud and financial exploitation, highlighting the urgent need for a nuanced understanding of digital assets.

Saqib articulated that the diverse categories of digital assets require “careful technical assessment alongside rigorous Shariah examination, rather than being viewed through a single lens.” This statement reflects the complex interplay between technological innovation and religious interpretation in a country where approximately 96.35% of the population identifies as Muslim, according to the 2023 census.

The dialogue comes at a time when Pakistan is transitioning from years of stringent restrictions to establishing a regulated crypto market. On April 15, the State Bank of Pakistan lifted an eight-year ban, allowing banks to open accounts for licensed virtual asset service providers (VASPs) under PVARA’s oversight. This pivotal change followed the enactment of the Virtual Assets Act 2026 in March, which formally established PVARA as the regulatory body for virtual asset activities.

The recent ruling from Usmani and five other scholars, issued by the esteemed Jamia Darul Uloom Karachi, declared that purchases made with cryptocurrencies, including stablecoins like USDT, are impermissible under their interpretation of Islamic law. The scholars argued that digital tokens do not meet the criteria of recognized property or wealth.

While Saqib did not directly contest this ruling, he urged for a collaborative approach among scholars, regulators, and industry stakeholders to explore the distinctions among various digital asset categories. “I shared that blockchain, digital assets, stablecoins, and tokenized real-world assets represent a broad spectrum of technologies and use cases,” he noted.

As Pakistan navigates the complexities of integrating digital assets within its financial framework, the ongoing discussions between regulatory bodies and religious scholars will be crucial in shaping public acceptance and ensuring that the country’s crypto landscape aligns with Islamic principles. The outcome of these dialogues could significantly influence the future of digital finance in Pakistan, as it seeks to balance innovation with adherence to cultural and religious values.