Pakistan crypto chief seeks dialogue after scholar rules against crypto paymentsPakistan’s virtual-assets regulator called for continued dialogue on the treatment of digital assets after meeting an Islamic scholar who backed a ruling against purchases made with crypto.

Bilal bin Saqib, chairman of Pakistan’s Virtual Assets Regulatory Authority (PVARA), has called for ongoing dialogue on the interpretation of digital assets under Islamic law following a meeting with prominent Islamic scholar Mufti Taqi Usmani. Usmani, along with five other scholars from Jamia Darul Uloom Karachi, recently endorsed a ruling against the use of cryptocurrencies for purchases, asserting that digital tokens, including stablecoins like USDT, do not qualify as recognized property or wealth under their understanding of Shariah law. Saqib emphasized that digital assets encompass a wide range of technologies and uses, urging careful technical as well as religious assessment rather than a blanket judgment.

The conversation between the regulator and religious authorities highlights an important challenge for Pakistan’s emerging crypto market, where religious perspectives hold substantial influence given that over 96% of the country’s approximately 231.7 million people identify as Muslim. The ruling against crypto payments could impact public acceptance and regulatory approaches, complicating efforts to develop a regulated digital asset ecosystem. Pakistan is currently transitioning from years of restrictions, recently allowing licensed virtual asset service providers (VASPs) to open bank accounts after the enactment of the Virtual Assets Act 2026.

This law established PVARA as the official body overseeing licensing and regulation of virtual asset activities in Pakistan, signaling a shift toward formalized regulation and industry development. The regulator’s focus on dialogue and nuanced examination of various digital asset categories shows an attempt to reconcile Islamic jurisprudence with evolving financial technology. The outcome of these discussions will be pivotal in determining the extent to which cryptocurrencies and related products can be integrated into Pakistan’s financial system, given both regulatory ambitions and religious constraints.