Top Virtual Asset Administrator in Pakistan, Bilal bin Saqib, I met an Islamic scholar who recently ruled to ban the purchase of anything using cryptocurrency. He concluded that stablecoins, token assets and raw cryptocurrency tokens should be reviewed separately.
The dispute is important because Pakistan is developing a licensing system that legally requires digital assets to be Sharia-compliant. About 30 to 40 million Pakistanis already own cryptocurrencies.
What the fatwa says
Bilal bin Saqib is the Chairman of the Pakistan Virtual Assets Regulatory Authority, or PVARA. In a post on X, Saqib described the July 11 meeting with Mufti Taqi Usmani as a “constructive discussion.” It is useful The two men want to protect Pakistanis from “fraud, exploitation and financial harm.”
However, Saqib stated that blockchain, fiat-backed stablecoin and tokenized real assets are not the same thing and should not be treated as such. He added that each deserves “a careful technical evaluation coupled with a rigorous forensic examination.”
Usmani and other scholars affiliated with Dar Al-Iftaa at Dar Al-Uloom University Karachi issued the ruling on June 10, and it was widely circulated on Friday. It concluded that cryptocurrencies are not considered “money,” the Islamic legal concept of wealth. Scientists have referred to them as imaginary digital entries in the account. USDT is named directly alongside other tokens.
Scholars were asked to talk about the case of books and online courses purchased via cryptocurrencies. They said the purchases were void and the buyer did not take legal possession of them. He was asked to return the books and delete the course materials, rather than use them or give them to someone else. The decision covers both the physical item and the digital service, so it is not just limited to speculative cryptocurrency trading; It also covers daily expenses.
According to Daily Pakistan newspaper advisory opinion It states that classifying a currency as a “virtual currency,” “token,” or “stablecoin” does not change its status because they all fall into the same prohibited category.
The fatwa is not a state law, but Usmani is a well-known figure in Islamic finance, so his opinion will likely influence the number of Pakistani Muslims who consider investing in cryptocurrencies.
Saqib did not say that Usmani changed his mind or softened his stance after the meeting. It has prompted constant communication between researchers and regulators as the country sets its own cryptocurrency rules.
Today I had a constructive discussion with Mufti Taqi Usmani Sahib about digital assets and the ongoing conversation about their legal status.
We are united around one fundamental goal: protecting Pakistanis from fraud, exploitation and financial harm.
I shared that…
— Bilal bin Saqib MBE (@Bilal binsaqib) July 11, 2026
Why the fatwa conflicts with Pakistan’s cryptocurrency campaign
The Pakistani Parliament approved the Virtual Assets Act in March 2026. PVARA became a permanent federal regulatory body, with the authority to license exchanges, custodians, wallet operators, and issuers of digital currencies, according to Cryptopolitan.
Operating without a license can result in fines of up to 50 million Pakistani rupees, or $179,000, in addition to prison time. Licensed companies must also submit their services to a panel of Islamic finance scholars to obtain Sharia approval.
Saqib bets on the committee’s structure. A case-by-case review could allow for a fiat-backed stablecoin or bond token while rejecting an unbacked speculative token. The fatwa closes this path by including USDT with everything else. The entire battle is over whether blockchain products can be categorized based on who supports them and what they do.
