Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), has called for individual Sharia assessments of different digital asset classes, following a meeting with prominent Islamic scholar Mufti Taqi Usmani, whose recent fatwa broadly rejected cryptocurrency transactions. The development signals a growing tension between Pakistan's expanding crypto regulatory framework and traditional Islamic finance jurisprudence.

What the PVARA Chairman Said

Saqib described his meeting with Usmani as a 'constructive discussion' focused on the Sharia status of digital assets. He argued that blockchains, stablecoins, tokenised real-world assets, and other digital instruments represent distinct technologies with varied use cases and 'merit careful technical assessment alongside rigorous Shariah examination, rather than being viewed through a single lens.' He also called for sustained dialogue among religious scholars, regulators, and industry experts as Pakistan develops its approach to emerging financial technology.

The Fatwa That Triggered the Debate

The exchange followed a fatwa issued the previous week by Mufti Taqi Usmani and other scholars of Jamia Darul Uloom Karachi's Darul Ifta, which declared that cryptocurrencies do not qualify as 'maal' — or wealth — under Sharia, describing them instead as fictitious numerical entries. The ruling went further than merely targeting speculative crypto trading. When asked whether purchases of goods and services — such as a book or an online course — made with cryptocurrency are valid, the scholars ruled they do not constitute a lawful transfer of ownership. Buyers were directed to return physical goods and delete purchased digital content, significantly broadening the fatwa's practical implications.

Where Regulators and Scholars Agree

Despite the apparent conflict, both Saqib and Usmani reportedly agreed on the need to protect Pakistanis from 'fraud, exploitation, and financial harm.' Notably, scholars have indicated that regulators have room to distinguish between unbacked cryptocurrencies, fiat-backed stablecoins, and tokenised securities — a distinction that could form the basis for a more nuanced Sharia framework tailored to different asset types.

Pakistan's Evolving Crypto Landscape

Pakistan's parliament passed the Virtual Assets Act in March 2025, formally establishing PVARA as a permanent federal regulator with authority to license exchanges, custodians, and token issuers. The State Bank of Pakistan had historically maintained a cautious stance on cryptocurrency. However, according to reports, an agreement with World Liberty Financial — a crypto business linked to the family of US President Donald Trump — reportedly extended quasi-official legitimacy to a foreign-controlled stablecoin ecosystem, adding a geopolitical dimension to the domestic regulatory debate.

What Comes Next

The PVARA's push for asset-by-asset Sharia scrutiny could set a precedent for how Muslim-majority nations reconcile Islamic finance principles with the rapidly evolving digital asset sector. Whether Pakistan's religious establishment and crypto regulators can arrive at a workable consensus will likely shape the country's position as a regional hub for virtual asset activity.