Pakistan Crypto Chief Seeks Islamic Finance Dialogue After Scholar's Ruling
Religious authorities and regulators discuss Shariah compliance of crypto assets in key meeting.
1Crypto Dialogue with Religious Authorities
Bilal bin Saqib, chairman of Pakistan's Virtual Assets Regulatory Authority (PVARA), met with Islamic scholar Mufti Taqi Usmani to discuss crypto assets' compliance with Islamic finance principles. The meeting emphasized the need for both technical and Shariah assessments of blockchain, stablecoins, and tokenized assets.
2Islamic Finance Perspective on Crypto Ban
A fatwa issued by Jamia Darul Uloom Karachi declared crypto purchases, including USDT, non-compliant with Islamic property definitions. This ruling poses significant challenges for crypto adoption in Pakistan, where 96% of the population is Muslim.
3Balancing Regulation and Religion
Rather than opposing religious authorities, the PVARA chairman called for nuanced evaluation of different crypto asset classes. This approach aims to reconcile Pakistan's push for licensed crypto markets with religious objections.
4Banking Restrictions Lifted
The State Bank of Pakistan's April decision to allow bank accounts for licensed virtual asset providers ended an eight-year crypto ban. This move strengthened PVARA's regulatory powers under the Virtual Assets Act 2026 passed in March.
5$3T Islamic Finance Market Opportunity
Discussions coincide with the growth of the global Islamic finance market exceeding $3 trillion and the rise of Shariah-compliant stablecoins like PUSD. Pakistan's ability to tap into this market hinges on reconciling technology with religious requirements.
6Critical Step for Crypto's Future
The future of crypto assets in Pakistan depends on dialogue between technological progress and religious authorities. Regulators' call for multi-faceted assessment could pave the way for balanced crypto ecosystem development in the 230-million-strong nation.