Pakistan’s top crypto regulator, Bilal bin Saqib, emphasized the importance of assessing digital assets individually under Islamic law. Saqib had a productive meeting with prominent scholar Mufti Taqi Usmani to address the Sharia status of digital assets. They both stressed the necessity of safeguarding Pakistanis from fraud and financial harm.
Saqib highlighted that technologies like blockchains, stablecoins, and tokenized assets require specific evaluation under Sharia law. He emphasized the need for a detailed technical assessment and Sharia examination tailored to each digital instrument. The recent fatwa by Usmani and other scholars questioned the classification of cryptocurrencies as wealth under Sharia, labeling them as fictitious entries.
The scholars clarified that purchases made with cryptocurrency, such as buying books or online courses, do not constitute a lawful transfer of ownership. They advised individuals to return the goods and delete digital materials to comply with Sharia principles. This ruling extended beyond speculative crypto trading to include transactions involving physical goods and digital services.
Saqib called for ongoing collaboration among religious scholars, regulators, and industry experts as Pakistan refines its stance on financial technology. Pakistan’s parliament enacted the Virtual Assets Act, establishing the Pakistan Virtual Assets Regulatory Authority (PVARA) as a permanent federal regulator with licensing authority over exchanges, custodians, and token issuers.
The State Bank of Pakistan, historically cautious about cryptocurrencies, recently engaged with a crypto business linked to US President Donald Trump’s family. This move provided a level of legitimacy to a foreign-controlled stablecoin ecosystem, signaling a shift in Pakistan’s approach to digital assets.
