Questions about the compliance of cryptocurrencies with Islamic law (Sharia) continue to spark debate in Muslim countries. This time, the initiative came from the Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), Bilal bin Saqib. In his statement, he emphasized that digital assets cannot be considered a single asset class from a Sharia perspective. Each token, coin, or stablecoin must undergo individual religious and legal scrutiny.
This approach is radically different from the simplified position previously voiced by the influential Islamic scholar Mufti Taqi Usmani. To recall, he deemed purchases using cryptocurrency (including USDT) impermissible, refusing to recognize digital assets as property. Usmani's fatwa was general and prohibitive in nature, creating serious legal and economic risks for market participants in Pakistan and other countries that look to his opinion.
The PVARA position, on the other hand, appears more flexible and technologically adequate. Different blockchain projects have fundamentally different economic natures: some are means of payment, others are utility tokens, and still others are digital representations of real assets. Applying a single standard to all means ignoring fundamental differences in their design and purposes. Individual analysis would allow, for example, recognizing stablecoins backed by real assets or tokens used in halal business models as Sharia-compliant, separating them from speculative or riba-related (usury-linked) instruments.
It is not yet reported whether Taqi Usmani's fatwa will be reconsidered following this statement. However, the very fact that an official regulator is taking such an analytical stance is a positive signal for the industry. It indicates the maturity of the discussion and an attempt to find a balance between religious norms and innovation.
My expert opinion: The PVARA approach is not just an attempt to legalize cryptocurrencies, but the only reasonable path for countries striving for a digital economy without abandoning religious principles. I expect that this kind of precedent-setting analysis will form the basis of future regulations in Islamic financial centers such as the UAE, Saudi Arabia, and Malaysia.