The question of whether cryptocurrencies comply with Islamic financial principles (Sharia) in Pakistan requires a more nuanced approach than simply lumping all digital assets into one category. This is the conclusion reached by Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA). His position is that each crypto asset should be evaluated individually, rather than as a single class of instruments.
This statement is a direct response to a recent fatwa (religious ruling) by influential Islamic scholar Mufti Taqi Usmani. He previously ruled that transactions involving cryptocurrencies, including the stablecoin USDT, are impermissible (haram) because, in his view, cryptocurrency is not recognized as property in the classical Islamic sense. This has caused significant controversy within Pakistan's crypto community and among regulators seeking to integrate digital assets into the legal framework.
Analysis: Why this matters
Bilal bin Saqib's position indicates an attempt by the regulator to find a compromise between strict religious norms and technological realities. A complete ban on all crypto assets could stifle innovation and push the market into a gray area. Dividing assets into "permissible" and "impermissible" based on their economic substance and backing is a more flexible and pragmatic path. However, the key question remains open: how exactly will this individual assessment be conducted, and what criteria will be used to determine the "halal" status of a given token? Without a clear methodology, this approach risks remaining merely a declaration.
For now, no official revision of Mufti Usmani's fatwa has followed the meeting with PVARA representatives, leaving the market in a state of uncertainty.