Pakistan Crypto Fatwa Sparks Debate Over Digital Asset Regulations
A recent crypto fatwa has triggered fresh debate over the future of Pakistan’s digital asset framework. The discussion gained momentum after Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib met with renowned Islamic scholar Mufti Taqi Usmani to discuss the Sharia status of cryptocurrencies and blockchain based financial products.
PVARA Calls for Separate Review of Digital Assets
Following the meeting, Bilal bin Saqib said that different digital assets should not be treated as a single category under Islamic law. He explained that stablecoins, tokenized real world assets, and blockchain based financial products each serve different purposes and should receive separate technical and Sharia evaluations. He also stressed the shared goal of protecting Pakistani citizens from fraud, financial exploitation, and harmful investment practices.
Fatwa Declares Crypto Purchases Impermissible
The debate follows a fatwa issued on June 10 by Mufti Taqi Usmani and scholars from Darul Ifta at Jamia Darul Uloom Karachi. The ruling states that cryptocurrencies, including USDT, do not qualify as recognized wealth under Sharia law. It also declared that purchases made with cryptocurrencies are not valid, covering both physical goods and digital services. However, the meeting did not result in any change to the scholars’ original position.
Sharia Compliance Remains Central to Pakistan's Crypto Framework
Pakistan is actively developing a regulated digital asset industry after passing the Virtual Assets Act earlier this year. The legislation established PVARA as the country’s permanent crypto regulator with authority to license exchanges, custodians, and token issuers. Under the new framework, all licensed crypto businesses must comply with Sharia principles, with guidance provided by a committee of Islamic finance experts.
Pakistan Continues to Expand Blockchain Initiatives
Despite the ongoing religious debate, Pakistan continues to move forward with its blockchain and digital finance strategy. The government is exploring a sovereign stablecoin, tokenization of state assets, and a state backed Bitcoin reserve. It has also allocated 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence data centers. As these initiatives progress, the outcome of discussions between regulators, Islamic scholars, and industry experts is expected to play a key role in shaping the future of cryptocurrency adoption in Pakistan.
