A conflict is brewing in Pakistan between religious norms and digital asset development. The regulator’s chairman is calling for dialogue with Islamic scholars.
Pakistan’s Virtual Assets Regulatory Authority chairman Bilal bin Saqib has called for continued dialogue on the status of cryptocurrency under Islamic law.
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The move follows a meeting with influential Islamic scholar Mufti Taqi Usmani, who backed a religious ruling against cryptocurrency purchases. Saqib did not challenge the ruling directly but proposed continuing discussions on distinctions between asset categories. We break down what to expect next.
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Under Islamic Law, Cryptocurrency Is Not Recognized as Property
According to Pakistan’s Dawn, Mufti Taqi Usmani and five other scholars from the respected Jamia Darul Uloom Karachi signed a religious ruling stating that purchases using digital assets–including stablecoins like USDT▲$0.9991–are not permissible. In their interpretation of Islamic law, digital tokens are not considered recognized property or wealth.
The ruling creates a potential conflict between the country’s ambition to build a regulated crypto market and religious norms that could affect public acceptance of digital assets. Religious views carry significant weight in Pakistan, where 96.35% of the population identifies as Muslim.
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Regulator’s Position: Dialogue Over Conflict
Saqib did not challenge the ruling directly but proposed continued discussion. In a post, he said the meeting covered blockchain, digital assets, stablecoins, tokenized real-world assets (RWAs), and the need to protect Pakistanis from fraud.
He emphasized that different categories of digital assets deserve “thorough technical assessment alongside serious Shariah research — not treatment through a single lens.” Saqib called on scholars, regulators, and industry participants to continue discussing distinctions between digital asset categories.
In March 2026, the Virtual Assets Act 2026 was passed, establishing PVARA as the statutory licensing and oversight authority for digital asset activities. On April 15, the State Bank of Pakistan allowed banks to open accounts for PVARA-licensed virtual asset service providers, ending an eight-year ban on regulated institutions’ crypto operations.
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