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Pakistan's top cryptocurrency regulator, Bilal bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), said he held a "constructive discussion" with renowned Islamic scholar Mufti Taqi Usmani on the Shariah status of digital assets. The meeting follows a fatwa issued by Darul Ifta, Jamia Darul Uloom, Karachi, which declared purchasing goods with cryptocurrency "impermissible," a ruling that has raised questions about Pakistan's rapid adoption of digital assets.

Coverage comparison

Dawn reported that Saqib, who has been leading Pakistan's efforts to embrace cryptocurrency since early 2025, posted on X about the discussion on Saturday. According to his post, the conversation centered on the ongoing debate over the Shariah status of digital assets, with both parties agreeing on a fundamental objective: protecting Pakistanis from fraud, exploitation, and financial harm.

The meeting comes amid a broader regulatory push. In a separate report, Saqib told Reuters that PVARA is in discussions with Jamia Darul Uloom to assess digital assets by category rather than as a single class, and that he had asked the seminary to draw a distinction between speculative cryptocurrencies and asset-backed digital tokens.

The fatwa, issued on June 10, has cast doubt on the government's rapid embrace of cryptocurrency in Pakistan, a country that has long ranked among the world's largest crypto markets by retail activity.

Key Claims

  • Mufti Taqi Usmani and six other scholars declared purchasing goods with cryptocurrency "impermissible" in a fatwa issued on June 10 by Darul Ifta, Jamia Darul Uloom, Karachi. The fatwa described cryptocurrency as "merely the recording of fictitious numbers in an account."
  • The fatwa stated that, according to research and opinion of experts so far, cryptocurrency is not considered "maal" (wealth) in Sharia, and therefore the buyer does not technically become the owner of goods purchased with cryptocurrency.
  • Bilal bin Saqib, chairman of PVARA, has asked the seminary to draw a distinction between speculative cryptocurrencies and asset-backed digital tokens.
  • Saqib said blockchain-recorded sukuk represents ownership of a real, income-generating asset, while gold-backed tokens or fully reserved stablecoins carry an enforceable claim on something tangible and redeemable.
  • PVARA is in discussions with the seminary to assess digital assets by category, not as a single class.
  • The fatwa has cast doubt on the government's rapid embrace of cryptocurrency in Pakistan.

Perspectives

Bilal bin Saqib, PVARA Chairman

Saqib argues that blockchain and digital assets represent a broad spectrum of technologies and use cases that merit careful technical assessment alongside rigorous Shariah examination, rather than being viewed through a single lens. He emphasizes that purely speculative tokens with no underlying asset are a separate matter and that "the scholars' concerns there must be taken seriously." He expressed optimism that Pakistan can lead the world in Shariah-compliant digital finance, but stressed that "that leadership must be built with our scholars."

Mufti Taqi Usmani and Darul Ifta, Jamia Darul Uloom, Karachi

The fatwa, signed by Mufti Usmani, a former judge of the Federal Shariat Court, and five other prominent scholars, holds that cryptocurrency is not recognized as wealth in Sharia. It declares that purchasing goods with cryptocurrency is not permissible, and that any goods acquired through such transactions must be returned to the seller. The fatwa also addressed digital courses, stating that obtaining an educational course through cryptocurrency is not valid and that materials should be deleted from one's devices.