Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), held a critical meeting with prominent Islamic scholar Mufti Taqi Usmani to discuss the future of digital assets. This meeting comes after Usmani’s fatwa characterized transactions with Tether (USDT) and other cryptocurrencies as “impermissible” (non-halal). The regulatory body emphasized the complexity of the technology and its various use cases, stating that all digital assets should not be lumped into a single category.

The fatwa published in recent days stated that cryptocurrencies are not recognized as “property” (mal) under Islamic law and consist merely of imaginary numbers recorded in accounts. This decision covers not only speculative trading but also physical products and digital services purchased with cryptocurrencies. Scholars argue that transactions made with such assets are invalid and that the products obtained should be returned.

Crypto Regulations and Sharia Compliance in Pakistan

PVARA Chairman Saqib argues that blockchain technology, stablecoins, and tokenized real-world assets possess distinct technical characteristics. This situation presents a picture where modern finance and traditional religious law stand like two separate pillars facing one another. While Saqib agrees with the scholars on protecting the public from fraud, he emphasizes that each asset must be subject to its own technical and Sharia review.

Pakistan aims to accelerate its digital asset plans starting from early 2025, reaching approximately 40 million users. While the government provides preliminary approval to giant exchanges like Binance and HTX, it is also continuing negotiations for the tokenization of $2 billion worth of government bonds. Additionally, the country’s plans to issue its own sovereign stablecoin and create a state-backed Bitcoin (BTC) reserve will be shaped according to the final decisions made by religious authorities.

Pakistan’s Crypto Crisis: Will the $2 Billion Plan Be Derailed by a Religious Fatwa? isimli makale Fatih TAŞDEMİR tarafından hazırlanmış ve koinbulteni.comda yayınlanmıştır.