PVARA Expert: Every crypto asset in Pakistan must be evaluated individually according to Sharia law
Pakistan's virtual assets regulator has once again raised the question of the religious legitimacy of digital currencies. The Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), Bilal bin Saqib, issued a statement emphasizing the need for an individual approach to assessing digital assets from a Sharia perspective.
According to the head of PVARA, it is a mistake to view all crypto assets as a single class. Each token or coin has unique technical characteristics, issuance mechanisms, and use cases, which require separate analysis for compliance with Islamic financial principles.
This position comes in the wake of a recent statement by an influential Islamic theologian, Mufti Taqi Usmani. He declared purchases with cryptocurrency, including the stablecoin USDT, impermissible, arguing that he does not recognize digital currencies as property. However, it is noted that after a meeting with industry representatives, no official revision of this fatwa (religious ruling) followed.
The situation in Pakistan remains extremely uncertain for market participants. On one hand, the regulator acknowledges the need for a differentiated approach, which opens the door for legitimizing individual projects. On the other hand, the conservative stance of leading religious authorities creates serious barriers to mass adoption.
My expertise: This conflict between the secular regulator and spiritual leaders is a classic example of institutional market immaturity in countries with strong religious legislation. Until a consensus is reached at the fatwa level, any regulatory initiative by PVARA risks remaining declarative, and investors risk operating in a gray zone with high legal risks. I recommend that market participants closely monitor developments: if PVARA manages to achieve individual certification for even one asset, it could set a precedent for the entire Islamic world.