The debate over cryptocurrencies in Pakistan has gained a new chapter. The chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), Bilal bin Saqib, argued that each digital asset should be analyzed individually according to Islamic law (Sharia), instead of all receiving the same classification.
The statement came after a meeting between Saqib and Mufti Taqi Usmani, one of the country's leading Islamic scholars. The meeting took place a few days after the release of a fatwa that broadly rejected transactions carried out with cryptocurrencies.
According to Saqib, both agreed on the need to protect the population against "fraud, exploitation and financial losses." Even so, the regulator argued that blockchain, stablecoins, tokenized real-world assets and other applications have distinct characteristics.
For this reason, in the PVARA chairman's assessment, these products should not be treated as a single category under Sharia.
“They deserve careful technical evaluation, together with rigorous Sharia review, rather than being viewed through a single lens,” Saqib said in a post on X.
The discussion gained momentum after the circulation of a fatwa issued on 10 de junho by Usmani and other scholars linked to Darul Ifta, of Jamia Darul Uloom Karachi. The document concludes that cryptocurrencies do not fit within the concept of "maal," or wealth recognized by Islamic law, classifying these assets as numerical records without patrimonial nature.
The decision also included USDT and other tokens. In one of the examples presented, the scholars assessed purchases of books and online courses paid for with cryptocurrencies and concluded that these transactions would be invalid.
According to the religious interpretation, the buyer would not have legally acquired ownership of the products. For this reason, the guidance was to return the books and delete the teaching material received, without using it or transferring it to third parties.
To obtain authorization, these companies will have to demonstrate compliance with Sharia, following the guidance of a committee specialized in Islamic finance.
This model may allow the regulator to differentiate unbacked cryptocurrencies, stablecoins pegged to fiat currencies and tokenized real-world assets. This separation was precisely one of the main points defended by Saqib after the meeting.
Meanwhile, the fatwa maintained a single interpretation for USDT and the other tokens when assessing whether they can be considered wealth recognized by Islamic law.
Parallel to the religious debate, Pakistan continues to accelerate its strategy for the cryptocurrency market. The government estimates about 40 million users in the country, is studying the launch of a sovereign stablecoin, intends to create a state Bitcoin reserve and has already allocated 2.000 megawatts of energy for Bitcoin mining and artificial intelligence infrastructure.
In parallel with the religious debate, Pakistan continues to accelerate its strategy for the cryptocurrency market. The government estimates around 40 million users in the country, is studying the launch of a sovereign stablecoin, intends to create a state Bitcoin reserve, and has already allocated 2.000 megawatts of energy for Bitcoin mining and artificial intelligence infrastructure.
In parallel with the religious debate, Pakistan continues to accelerate its strategy for the cryptocurrency market. The government estimates around 40 million users in the country, is studying the launch of a sovereign stablecoin, intends to create a state Bitcoin reserve, and has already allocated 2.000 megawatts of energy to Bitcoin mining and artificial intelligence infrastructure.
