The question of compliance of digital assets with Islamic law requires an individual approach to each instrument, rather than a universal classification. This statement was made by Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA).
In his view, equating all crypto assets to a single class and issuing a general religious ruling on them is methodologically incorrect. Different tokens and coins have fundamentally different economic natures, issuance mechanisms, and degrees of decentralization, which directly affects their compliance with Sharia principles.
Fatwa Against USDT
Earlier, influential Islamic scholar Mufti Taqi Usmani issued a fatwa stating that purchases using cryptocurrency, including the stablecoin USDT, are impermissible (haram). The basis for this was that he did not recognize digital assets as property in the traditional sense. However, no official reports have been received regarding a revision of this position after the meeting with PVARA representatives.
The situation in Pakistan clearly demonstrates the key problem of regulating the crypto market in countries with a strong influence of religious law. Until theologians and regulators develop clear criteria for each class of assets—from fully decentralized coins to centralized stablecoins—market participants will remain in a zone of legal and religious uncertainty. In my opinion, PVARA's approach to individual asset assessment is the only correct path, which will allow separating the wheat from the chaff and, over time, integrate crypto instruments that truly comply with Sharia into the Islamic financial system.