Chairman of the Pakistan Virtual Assets Regulatory Authority, Bilal bin Saqib, called for continued discussion on digital assets under Islamic law. His statement came after a meeting with researcher Mufti Taqi Usmani on July 11. Saqib said the two sides share one goal: protecting Pakistanis from fraud, exploitation and financial harm.
summary
- Pakistan’s crypto chief seeks technical and Sharia reviews rather than one broad ruling for digital assets.
- Ruling Mufti Taqi Usmani rejects the purchase of cryptocurrencies because the tokens lack a recognized legitimate wealth status.
- Pakistan continues to license cryptocurrency companies while religious concerns add another layer to its regulatory rollout.
In his country General statementBlockchain, stablecoins, tokenized real assets and other digital assets cover different technologies and uses, Saqib said. He said it requires “a careful technical evaluation coupled with a rigorous forensic examination.”“ Rather than one broad ruling. He also called for greater engagement between scientists, regulators and industry professionals.
The religious ruling rejects purchases made using cryptocurrencies
The meeting came after the issuance of an Islamic legal ruling by the Fatwa House at Dar Al Uloom University, Karachi. Mufti Usmani and five other scholars signed the ruling, dated June 10, 2026. He said that purchases made using cryptocurrencies, including USDT, are not permissible under their reading of Islamic law.
according to Dawn reportCurrent research has not proven that cryptocurrencies are recognized property or wealth, the scientists said. The referee described it as: “Just register fake numbers in the account.“ Saqib did not directly reject this result. Instead, it requested separate reviews for different digital asset classes.
Pakistan continues to build a licensed cryptocurrency market
The exchange comes at a time when Pakistan is moving forward with the regulated virtual assets sector. The Virtual Assets Act 2026 established PVARA as the body responsible for licensing and supervising virtual asset service providers. PVARA has also opened a public consultation on rules covering exchanges, custodians, brokers, token issuers and other service providers.
On April 15, the State Bank of Pakistan allowed banks to open accounts for companies licensed by PVARA. the Central Bank circular It requires banks to check licenses, conduct due diligence, monitor accounts, and separate customer funds from company funds. Banks cannot use their capital or customer deposits to trade or hold virtual assets.
precedent a report The policy appears to have ended an eight-year-old restriction on banking services for regulated cryptocurrency companies. The report said banks still need to follow foreign exchange and anti-money laundering and terrorist financing rules. Suspicious activity must be reported to the Financial Control Unit of Pakistan.
Stablecoins and tokenization remain part of policy plans
Pakistan has also explored stablecoins and tokenized assets through agreements with international companies. In December 2025, the government signed a non-binding agreement with Binance to study the tokenization of up to $2 billion of the country’s assets. Crypto news Coverage The plan was linked to government bonds, treasury bills, and commodity reserves.
A separate agreement in January 2026 included studying the use of the USD1 stablecoin in cross-border payments. Crypto.news reported The work will include the Pakistani Ministry of Finance and the Central Bank. These projects remain subject to regulation, technical review and official approval.
The dispute over cryptocurrency payments is now adding a religious review to the regulatory process in Pakistan. PVARA did not announce any change in licensing rules after the meeting. An insightful statement that leaves the discussion open as the regulatory body continues to formulate operating standards. The ruling did not change government licensing rules, while licensed companies remained bound by the Virtual Assets Law and central bank controls.
