Pakistan crypto chief seeks dialogue after Islamic ruling
Pakistan crypto chief seeks continued dialogue on digital assets under Islamic law after PVARA chairman Bilal bin Saqib met Mufti Taqi Usmani, who backed a ruling against purchases made with crypto. The exchange underscores tension between Pakistan's push to build a licensed virtual-asset market and religious objections that could influence how millions of Muslims view digital payments.
Key Takeaways
- PVARA chief Bilal bin Saqib met Mufti Taqi Usmani for a constructive discussion on digital assets and Shariah compliance.
- Scholars at Jamia Darul Uloom Karachi reportedly ruled that crypto payments, including stablecoins like USDT, are not permitted under Islamic law.
- Saqib did not challenge the ruling but urged category-by-category review of blockchain, stablecoins, and tokenized assets.
- Pakistan is shifting toward a licensed crypto sector under the Virtual Assets Act 2026, with banks now allowed to serve licensed VASPs.
Why did Pakistan's crypto chief meet Mufti Taqi Usmani?
In a Saturday post on X, Saqib said he held a constructive discussion with Mufti Usmani on digital assets and the ongoing conversation around their Shariah status. The meeting followed reports that Usmani and five other scholars signed an Islamic legal ruling issued by Jamia Darul Uloom Karachi on Friday.
Saqib said the talk covered blockchain technology, digital assets, stablecoins, and tokenized real-world assets (RWAs), along with protecting Pakistanis from fraud, exploitation, and financial harm. Religious views could carry significant weight in Pakistan, where about 231.7 million people, or 96.35% of the population, identified as Muslim in the 2023 census, according to CoinTelegraph.
What did the Islamic ruling say about crypto payments?
According to Pakistani newspaper Dawn, the ruling said purchases made with crypto were not permitted because digital tokens did not qualify as recognized property or wealth under their interpretation of Islamic law. That reportedly includes stablecoins such as USDT.
Saqib did not directly challenge the claim. Instead, he argued that different categories of digital assets merit careful technical assessment alongside rigorous Shariah examination, rather than being viewed through a single lens.
"I shared that blockchain, digital assets, stablecoins, and tokenized real-world assets represent a broad spectrum of technologies and use cases," he said. He added that he looks forward to continued engagement among scholars, regulators, and industry experts.
How is Pakistan regulating virtual assets?
The discussion comes as Pakistan shifts from years of restrictions toward a licensed virtual-asset sector. On April 15, the State Bank of Pakistan allowed banks to open accounts for virtual asset service providers licensed by PVARA, ending an eight-year restriction on regulated institutions dealing with crypto.
The move followed passage of Pakistan's Virtual Assets Act 2026 in March, which established PVARA as the statutory body responsible for licensing and oversight of virtual asset activities. For ongoing Fintech & Crypto Alerts coverage, watch how religious rulings interact with this new regulatory framework.
What happens next for crypto in Pakistan?
Saqib's call for dialogue suggests regulators will keep engaging Islamic scholars even as they license VASPs and open banking rails. Whether public acceptance grows may depend on how narrowly scholars apply the ruling and whether stablecoins, tokenized RWAs, and other asset types receive distinct Shariah reviews.