Pakistan regulator seeks talks after scholar bans crypto payments

Bilal bin Saqib, chair of the Pakistan Virtual Assets Regulatory Authority, called for ongoing talks on the treatment of digital assets under Islamic law after meeting Mufti Taqi Usmani. In a post on Saturday, Saqib summarized the discussion and urged further engagement among scholars, regulators and industry stakeholders.

The meeting covered blockchain technology, digital assets, stablecoins and tokenized real-world assets. Saqib highlighted the need to protect Pakistanis from fraud, exploitation and financial harm while examining how different token types should be classified and regulated.

In his post, Saqib wrote: “I shared that blockchain, digital assets, stablecoins, and tokenized real-world assets represent a broad spectrum of technologies and use cases. They merit careful technical assessment alongside rigorous Shariah examination, rather than being viewed through a single lens.”

A legal ruling issued by Jamia Darul Uloom Karachi and signed by Mufti Taqi Usmani and five other scholars states that purchases with cryptocurrencies, including stablecoins such as USDT, are not permitted. The ruling explains the scholars do not consider those digital tokens to qualify as recognized property or wealth under their interpretation of Islamic law.

Saqib did not directly challenge the ruling. He emphasized distinctions among types of digital assets and encouraged continued technical and religious review to inform any legal or regulatory response.

The discussion follows recent legal and regulatory changes. Parliament passed the Virtual Assets Act 2026 in March, establishing PVARA as the statutory regulator for licensing and oversight of virtual-asset activities. 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-related businesses.

Pakistan’s 2023 census recorded about 231.7 million people, of whom roughly 96.35% identified as Muslim. PVARA’s responsibilities include assessing licensing requests, monitoring market conduct and coordinating with religious authorities and other regulators as the country defines how digital assets will be classified and used under Pakistani law.