Pakistan Crypto Chief Seeks Dialogue After Scholar Rules Against Crypto Payments
Vexoda Newsroom
Pakistan's virtual assets regulator calls for continued dialogue with Islamic scholars on crypto payments amid a ruling against their use.
In Pakistan, the country’s Virtual Assets Regulatory Authority (PVARA) chairman Bilal bin Saqib has called for ongoing discussions after meeting prominent scholar Mufti Taqi Usmani. The discussion centered around digital assets and blockchain technology under Islamic law, with Usmani backing a ruling against crypto payments.
The PVARA's call for dialogue comes as Pakistan moves towards establishing a regulated virtual asset sector following the passage of the Virtual Assets Act 2026 in March. This act created the statutory body PVARA to oversee and license virtual asset activities, ending an eight-year restriction on banks dealing with crypto.
Mufti Taqi Usmani's ruling stated that purchases made using cryptocurrencies are not permissible under Islamic law because digital tokens do not qualify as recognized property or wealth according to his interpretation. This stance reflects the ongoing tension between Pakistan’s regulatory push and religious objections, which could significantly influence public acceptance of blockchain technology in the country.
In a statement, Saqib highlighted that different categories of digital assets require careful technical assessment alongside rigorous Shariah examination rather than being viewed through a single lens. He emphasized the need for continued discussions among scholars, regulators, and industry participants to address these complex issues.
The implications of this ruling are significant as Pakistan aims to integrate blockchain technology into its financial system while respecting religious principles. The dialogue will likely influence how digital assets such as stablecoins and tokenized real-world assets (RWAs) are treated in the country’s market.
Traders should monitor future developments, particularly any changes in PVARA policies or guidelines resulting from these discussions, which could impact the regulatory environment for virtual assets in Pakistan.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.