Crypto news

Digital assets in Pakistan should not be considered a homogeneous class from the perspective of Islamic law. This position was voiced by the Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), Bilal bin Saqib, emphasizing the need for an individual approach to each crypto asset when assessing its compliance with Sharia norms.

According to the head of PVARA, a universal approach to cryptocurrencies is unacceptable, as their nature, issuance mechanisms, and economic essence differ significantly. Instead of declaring all digital assets as prohibited or permitted, the regulator proposes conducting an isolated analysis of each token, taking into account its specific characteristics and functional purpose.

This statement came amid a recent fatwa by influential Islamic scholar Mufti Taqi Usmani, who deemed purchases using cryptocurrency, including the stablecoin USDT, as non-compliant with Sharia. Usmani refused to recognize crypto assets as property, which automatically invalidates transactions using them from the perspective of Islamic law.

Notably, after a meeting with PVARA representatives, no information about a possible revision of this fatwa has been reported, indicating ongoing disagreements between religious authorities and regulatory bodies.

My analysis: PVARA's approach appears pragmatic and technically sound — indeed, classifying Bitcoin, USDT, and some DeFi token as homogeneous assets from the perspective of Islamic law is methodologically incorrect. However, in practice, this creates a colossal burden on the regulator: it would have to issue separate rulings for thousands of tokens, which is practically unfeasible in a rapidly changing market. A real compromise could be the creation of a "white list" of Sharia-approved crypto assets with clear inclusion criteria.