Separate Sharia assessment necessary for crypto assets: Pakistan's crypto regulator
New Delhi, July 13
Pakistan's top crypto regulator said digital assets should be assessed individually under Islamic law after meeting a prominent scholar whose recent fatwa broadly rejected purchases made with cryptocurrency, a new report has said.
Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority, said he held a "constructive discussion" with Mufti Taqi Usmani about the Sharia status of digital assets and that both agreed on the need to protect Pakistanis from "fraud, exploitation, and financial harm," the report from The Block said.
Saqib argued that blockchains, stablecoins, tokenized real‑world assets and other digital instruments represent different technologies and use cases and "merit careful technical assessment alongside rigorous Shariah examination, rather than being viewed through a single lens."
The comments came after a fatwa previous week by Usmani and other scholars of Jamia Darul Uloom Karachi's Darul Ifta, that said cryptocurrencies do not qualify as "maal," or wealth, under Sharia and are rather just fictitious numerical entries.
When asked if purchases of goods and services such as a book or an online course made with cryptocurrency are valid, the scholars said they do not amount to lawful transfer of ownership of the products.
Scholars asked the purchaser to return the books and delete the course materials and hence the ruling expanded its scope beyond speculative crypto trading to trade of physical goods and digital services.
Saqib called for continued engagement among religious scholars, regulators and industry experts as Pakistan develops its approach to emerging financial technology.
Pakistan's parliament passed the Virtual Assets Act in March, making PVARA a permanent federal regulator with powers to license exchanges, custodians and token issuers.
Regulators have room to distinguish between unbacked cryptocurrencies, fiat‑backed stablecoins and tokenized securities, the scholar said.
Another report has said that the State Bank of Pakistan had historically taken a cautious stance on crypto, but the agreement with US President Donald Trump's family-linked crypto business, World Liberty Financial, gave quasi‑official legitimacy to a foreign‑controlled stablecoin ecosystem.
— IANS
Reader Comments
As someone who works in fintech in Bangalore, I find this whole Sharia compliance debate fascinating but also a bit confusing. The fatwa says crypto isn't 'maal' - but stablecoins and tokenized assets are completely different animals. The PVARA chairman is right: we need a nuanced, case-by-case assessment. Pakistan's approach of engaging religious scholars alongside regulators is actually smart. India could learn something here instead of just banning everything with a 30% tax! 😅
The fatwa says buying a book with crypto isn't valid and you have to return it? That's extreme. If I pay for an online course with Bitcoin and the seller is happy, why should a religious scholar tell me my transaction is invalid? I understand the concern about speculation and gambling (gharar), but banning all crypto use seems like throwing the baby out with the bathwater. Pakistan's regulator is at least trying to find a middle path.
The real story here isn't Sharia law - it's the World Liberty Financial deal with Trump's family. Pakistan's government is giving legitimacy to a foreign stablecoin ecosystem linked to a US presidential candidate. That's a huge geopolitical red flag. India should watch this closely, because if Pakistan's crypto market gets integrated with Trump-associated projects, it could have implications for regional financial stability. The Sharia debate is just a distraction from this power play.
Respectful criticism: I'm a Hindu and find this whole religious overlay on technology puzzling. Should every country's crypto regulation be tied to its dominant religion? What happens to minorities? In India, we have a secular constitution - crypto rules should apply equally to everyone, not be filtered through any religious lens. That said, Pakistan has every right to do what works for their society. Just find it ironic that they're debating Sharia compliance while partnering with Trump's business interests. 🤔
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.