The Chairman of the Pakistan Virtual Assets Regulatory Authority, Bilal bin Saqib, has emphasized the necessity for ongoing dialogue regarding digital assets within the framework of Islamic law. His remarks came after a pivotal meeting with renowned scholar Mufti Taqi Usmani on July 11, focusing on a shared objective: safeguarding the financial interests of Pakistanis from fraud and exploitation.
Understanding the Implications of Recent Rulings
Saqib's statement is particularly significant in light of a recent ruling issued by Mufti Usmani and a group of scholars from Jamia Darul Uloom Karachi. This ruling, dated June 10, 2026, declared that transactions involving cryptocurrencies such as USDT violate Islamic principles since these digital currencies do not possess an established status as recognized wealth. The scholars asserted that cryptocurrencies are essentially 'just the recording of fictitious numbers in an account.' This rejection has crucial implications for the burgeoning crypto landscape in Pakistan, as it complicates the regulatory framework.
In his public address, Saqib refrained from outright dismissing the scholars' conclusions. Instead, he advocated for a nuanced approach, arguing that the varied nature of blockchain technology, stablecoins, and tokenized assets necessitates meticulous technical assessments and tailored Shariah evaluations rather than relying on a single blanket judgment.
Regulatory Developments in Pakistan's Crypto Market
As Pakistan forges ahead with a licensed crypto sector, the regulatory landscape continues to evolve. The introduction of the Virtual Assets Act 2026 has established PVARA as the regulator overseeing virtual asset service providers. Recently, PVARA launched a public consultation process aimed at shaping rules for exchanges, custodians, brokers, and token issuers.
Moreover, the State Bank of Pakistan has taken steps to facilitate banking services for licensed crypto firms. A recent circular permits these banks to open accounts for such companies, provided they adhere to strict compliance measures regarding due diligence and customer fund segregation.
This marked a significant shift, as it ended an eight-year hiatus on banking services for regulated crypto entities, although institutions remain bound by anti-money laundering and counterterrorism financing regulations. Consequently, any suspicious activities must be reported to the Financial Monitoring Unit of Pakistan.
Amid these developments, stablecoins and tokenization remain central to Pakistan's strategic plans, further illustrating the government's commitment to advancing its digital asset framework despite ongoing religious and regulatory challenges.
This material is informational and should not be considered as financial advice.
