Pakistan Virtual Assets Regulatory Authority Chairman Bilal bin Saqib has called for continued discussion on digital assets under Islamic law. His statement followed a meeting with scholar Mufti Taqi Usmani on July 11. Saqib said both sides shared one aim: protecting Pakistanis from fraud, exploitation, and financial harm. Summary Pakistan’s crypto chief seeks technical and Shariah reviews instead of one broad digital asset ruling. Mufti Taqi Usmani’s ruling rejects crypto purchases because tokens allegedly lack recognised Shariah wealth status. Pakistan continues licensing crypto firms while religious concerns add another layer to its regulatory rollout. In his public statement, Saqib said blockchain, stablecoins, tokenized real-world assets, and other digital assets cover different technologies and uses. He said they require “careful technical assessment alongside rigorous Shariah examination” instead of one broad judgment. He also called for further engagement among scholars, regulators, and industry specialists. Religious ruling rejects purchases made with crypto The meeting followed an Islamic legal ruling issued by Darul Ifta at Jamia Darul Uloom Karachi. Mufti Usmani and five other scholars signed the ruling, dated June 10, 2026. It said purchases made with cryptocurrency, including USDT, were not permitted under their reading of Islamic law. According to Dawn’s report, the scholars said current research did not establish crypto as recognised property or wealth. The ruling described it as “merely the recording of fictitious numbers in an account.” Saqib did not directly reject that finding. He instead asked for separate reviews of different digital asset categories. Pakistan continues building a licensed crypto market The exchange comes as Pakistan moves ahead with a regulated virtual asset sector. The Virtual Assets Act 2026 created PVARA as the body responsible for licensing and supervising virtual asset service providers. PVARA also opened a public consultation on rules covering exchanges, custodians, brokers, token issuers, and other providers. On April 15, the State Bank of Pakistan allowed banks to open accounts for firms licensed by PVARA. The central bank circular requires banks to verify licences, perform due diligence, monitor accounts, and keep customer money separate from company funds. Banks cannot use their own capital or customer deposits to trade or hold virtual assets. A previous report shows that the policy ended an eight-year restriction on banking services for regulated crypto firms. The report said banks must still follow foreign exchange, anti-money laundering, and counterterrorism financing rules. Suspicious activity must be reported to Pakistan’s Financial Monitoring Unit. Stablecoins and tokenization remain part of policy plans Pakistan has also explored stablecoins and tokenized assets through agreements with international companies. In December 2025, the government signed a nonbinding agreement with Binance to study the tokenization of up to $2 billion in state assets. Crypto.news coverage linked the plan to government bonds, Treasury bills, and commodity reserves. A separate January 2026 agreement involved studying the use of the USD1 stablecoin in cross-border payments. Crypto.news reported that the work would involve Pakistan’s finance ministry and central bank. These projects remain subject to regulation, technical review, and formal approval. The dispute over crypto payments now adds a religious review to Pakistan’s regulatory process. PVARA has not announced any change to licensing rules after the meeting. Saqib’s statement leaves the discussion open while the regulator continues drafting operating standards. The ruling did not change state licensing rules, while licensed firms remained bound by the Virtual Assets Act and central bank controls.
