Pakistan's digital asset regulator is taking an important step toward a structured approach in Islamic finance. Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), has clearly stated the position: cryptocurrencies cannot be considered a homogeneous asset class from a Sharia perspective. Each digital asset requires individual legal and religious scrutiny.
This statement is a direct response to a recent fatwa by Mufti Taqi Usmani, one of the world's most influential Islamic scholars. Usmani declared cryptocurrency transactions, including the stablecoin USDT, impermissible, as he did not recognize them as property. His position created significant uncertainty for the crypto industry in a country with a population of over 240 million, where Islamic finance plays a dominant role.
PVARA's proposal to differentiate assets is not merely a bureaucratic formality. It is an attempt to strike a balance between strict religious norms and technological progress. For example, tokens backed by real assets or gold may receive approval, while purely speculative coins may not. This approach opens the door for legalizing part of the crypto market without directly conflicting with the fatwa.
As of now, there has been no official review or revocation of Mufti Usmani's fatwa. However, PVARA's position signals to the market that Pakistan does not intend to completely block digital assets but is seeking legitimate frameworks for their integration.
Analyst comment: PVARA's initiative is a pragmatic yet risky maneuver. On one hand, an asset-by-asset approach allows it to maintain face with religious institutions. On the other, it sets a precedent for endless debates about the nature of each new token. If Pakistan can develop clear criteria for the "halalness" of cryptocurrencies, it will create a powerful precedent for the entire Islamic world, where millions of believers seek access to DeFi without violating religious norms.