SKN | Pakistan Crypto Regulator Calls for Dialogue After Islamic Scholars Reject Crypto Payments

Key Points

• Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib has called for continued dialogue on digital assets following a religious ruling against cryptocurrency payments.

• Prominent Islamic scholar Mufti Taqi Usmani supported a fatwa stating that purchases made with cryptocurrencies, including stablecoins, are not permissible under its interpretation of Islamic law.

• Pakistan’s crypto regulator argues that blockchain technology, stablecoins and tokenized real-world assets should be evaluated individually rather than under a single religious or regulatory framework.

• The debate comes as Pakistan advances its regulated digital asset industry through the recently established Virtual Assets Regulatory Authority.

Pakistan’s top digital asset regulator has called for continued engagement between religious scholars, regulators and the blockchain industry following a significant Islamic legal ruling that challenges the use of cryptocurrencies for payments.

Bilal bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), said discussions with leading Islamic scholar Mufti Taqi Usmani focused on blockchain technology, digital assets, stablecoins and tokenized real-world assets, while emphasizing the importance of protecting consumers from fraud and financial harm.

The meeting highlights Pakistan’s efforts to balance financial innovation with Islamic legal principles as it develops a regulated cryptocurrency market.

Religious Ruling Questions Crypto Payments

The discussions followed an Islamic legal ruling reportedly issued by Jamia Darul Uloom Karachi, one of Pakistan’s most influential Islamic seminaries.

According to local reports, Mufti Taqi Usmani and five other scholars concluded that purchases made using cryptocurrencies, including stablecoins such as USDT, are not permissible because digital tokens do not qualify as recognized property or wealth under their interpretation of Shariah law.

Rather than directly challenging the ruling, Saqib emphasized that digital assets represent a broad and diverse category that warrants more nuanced evaluation.

Regulators Advocate Asset-by-Asset Assessment

Saqib argued that different forms of blockchain-based assets should not be viewed through a single regulatory or religious framework.

He noted that cryptocurrencies, stablecoins, blockchain infrastructure and tokenized real-world assets each serve different economic purposes and therefore require separate technical and Shariah assessments.

The regulator believes continued collaboration between Islamic scholars, financial authorities and industry participants will be essential as digital finance continues to evolve.

Pakistan Continues Building Crypto Framework

The debate comes during a period of rapid regulatory development for Pakistan’s digital asset sector.

Earlier this year, Pakistan enacted the Virtual Assets Act 2026, establishing the Pakistan Virtual Assets Regulatory Authority as the country’s official licensing and supervisory body for virtual asset service providers.

In April, the State Bank of Pakistan also lifted long-standing restrictions by allowing banks to provide services to licensed virtual asset businesses, marking a significant shift in the country’s approach toward regulated cryptocurrency activity.

Religious Views May Shape Market Adoption

Religious guidance carries significant influence in Pakistan, where more than 96% of the population identifies as Muslim.

As a result, Islamic legal opinions could play an important role in determining public adoption of digital assets, particularly for payment-related use cases.

While regulatory infrastructure continues to develop, broader acceptance may depend on whether scholars and industry participants can reach greater consensus regarding the treatment of different categories of blockchain-based assets.

Outlook

Pakistan’s evolving crypto framework illustrates the growing intersection between financial innovation, regulation and Islamic finance. While regulators continue building a licensed digital asset ecosystem, ongoing dialogue with religious authorities may prove equally important in determining how cryptocurrencies, stablecoins and tokenized assets develop within one of the world’s largest Muslim-majority economies.