Pakistan Crypto Chief Seeks Dialogue After Islamic Ruling Against Crypto
PVARA Chairman Bilal bin Saqib met with scholar Mufti Taqi Usmani, who backed a ruling declaring crypto payments impermissible under Islamic law. Saqib calls for nuanced Shariah assessment, highlighting tension between Pakistan’s regulatory push and religious views that could shape public acceptance.
Quick Take
Six scholars ruled crypto payments not compliant with Islamic law.
PVARA chief urges dialogue on digital asset classifications.
Pakistan’s 231.7M Muslims may influence crypto adoption.
Regulatory framework progressing despite religious objections.
Market Impact Analysis
BearishReligious ruling in predominantly Muslim Pakistan may hinder crypto adoption, but ongoing dialogue and regulatory progress could mitigate impact.
Speculation Analysis
Key Takeaways
- Six prominent Islamic scholars declared crypto payments impermissible under Shariah law.
- PVARA chief Bilal bin Saqib met Mufti Taqi Usmani, urging continued dialogue on digital asset categories.
- Pakistan’s overwhelmingly Muslim population (231.7M) means religious rulings could heavily sway crypto adoption.
- Despite the ruling, Pakistan’s regulatory framework advances with the Virtual Assets Act and VASP banking access.
What Happened
Pakistan’s top virtual assets regulator, PVARA Chairman Bilal bin Saqib, engaged in direct talks with Mufti Taqi Usmani after the prominent scholar and five others ruled that cryptocurrency payments violate Islamic law. The ruling, issued by Jamia Darul Uloom Karachi, argues that digital tokens like USDT do not qualify as recognized property or wealth under Shariah. Saqib refrained from directly contesting the decree but stressed the need for a comprehensive Shariah review that differentiates between various digital asset classes. The meeting highlights the growing friction between Pakistan’s ambitious regulatory agenda and deep-rooted religious norms that could define public acceptance.
The Numbers
The demographic stakes are enormous. Pakistan’s 2023 census counts 231.7 million people, with 96.35% identifying as Muslim. The fatwa from Jamia Darul Uloom Karachi carries the signatures of six respected scholars, including Mufti Taqi Usmani, a globally recognized authority on Islamic finance. On the regulatory side, March 2026 saw the passage of the Virtual Assets Act, creating PVARA as the statutory overseer. Weeks later, on April 15, 2026, the State Bank of Pakistan lifted an eight-year ban, permitting banks to offer accounts to licensed VASPs. These timelines underscore the clash between faith-based rulings and state-led crypto integration.
Why It Happened
The religious prohibition stems from a strict interpretation that cryptocurrencies lack the tangible substance required for a valid asset under Islamic commercial law. With Pakistan actively constructing a regulated crypto market, the ruling poses a direct challenge to adoption rates in a nation where religious guidance holds substantial influence. Saqib’s call for dialogue reflects a recognition that blanket rejection could stifle innovation, while nuanced classification—separating speculative tokens from asset-backed stablecoins or tokenized real-world assets—might carve a permissible path. The PVARA’s engagement with top scholars signals an attempt to align regulatory goals with Shariah compliance, avoiding an outright collision.
Broader Impact
The standoff could set a precedent for other Muslim-majority nations wrestling with crypto’s Islamic compliance. If Pakistan’s dialogue yields a tiered acceptance framework, it may influence global Islamic finance, where tokenized assets are already gaining traction. Conversely, a rigid rejection could slow adoption across the region, forcing regulators to navigate between innovation and deeply held religious principles.
What to Watch Next
- Outcomes of continued Shariah review sessions between PVARA and Islamic scholars.
- Public sentiment shifts as the fatwa circulates among Pakistan’s vast Muslim population.
- Regulatory implementation: Will Pakistan’s licensed exchanges face user resistance due to religious concerns?
This article is for informational purposes only and does not constitute financial advice.
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