MV Capital - Pakistan Crypto Chief Calls for Dialogue After Scholar Rejects Crypto Payments

Pakistan’s virtual assets regulator has met with a leading Islamic scholar following a ruling against crypto-based purchases, urging separate reviews for different digital asset types while advancing its licensing framework

Regulatory Push Meets Religious Review

Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib held talks with Mufti Taqi Usmani on July 11. The meeting addressed blockchain technology, stablecoins, tokenized real-world assets, and public protection from fraud and financial harm.

Bilal bin Saqib stated that different categories of digital assets require careful technical assessment alongside rigorous Shariah examination rather than a single approach.

The discussion follows an Islamic legal ruling issued by Darul Ifta at Jamia Darul Uloom Karachi. Mufti Taqi Usmani and five other scholars signed the document on June 10, 2026. It concluded that purchases using cryptocurrency, including USDT, do not meet criteria for recognized property or wealth under their interpretation of Islamic law.

“I shared that blockchain, digital assets, stablecoins, and tokenized real-world assets represent a broad spectrum of technologies and use cases.”Bilal bin Saqib, PVARA Chairman

Background of the Ruling

Reports indicate the scholars viewed digital tokens as recordings of fictitious numbers in accounts rather than established forms of wealth. Saqib did not directly contest this position. Instead, he advocated for continued engagement among scholars, regulators, and industry participants to examine asset categories individually.

This development occurs as Pakistan builds its regulated virtual asset sector. The Virtual Assets Act 2026 established PVARA to handle licensing and oversight of service providers, including exchanges, custodians, and token issuers.

Progress in Licensed Crypto Framework

In April 2026, the State Bank of Pakistan issued guidance allowing banks to open accounts for PVARA-licensed virtual asset service providers. This step ended an eight-year restriction on such banking services for regulated firms. Banks must still conduct due diligence, separate customer funds, and comply with anti-money laundering and foreign exchange rules.

PVARA has also opened public consultations on operational rules for various market participants. These efforts aim to create a structured environment for virtual asset activities.

Key Developments in Pakistan’s Crypto ApproachEstablishment of PVARA under the Virtual Assets Act 2026
Banking access granted to licensed virtual asset firms
Ongoing public consultations on licensing standards
Exploration of stablecoins and tokenized assets in prior agreements

Focus on Public Protection and Distinctions

Saqib stressed the shared goal of safeguarding citizens. His comments pointed to the need for differentiated evaluations based on how specific technologies function. Stablecoins and tokenized assets, in particular, formed part of the conversation due to their distinct structures and potential applications.

The regulator’s position leaves room for further technical and religious analysis without halting current licensing processes. Licensed entities continue to operate under the existing legal and supervisory framework.

Aspect	Details
Regulatory Body	PVARA
Key Meeting	Bilal bin Saqib with Mufti Taqi Usmani
Ruling Date	June 10, 2026
Core Concern	Status of crypto as property under Shariah

Pakistan’s population includes a significant majority identifying as Muslim according to census data. This context adds weight to how religious interpretations intersect with regulatory steps in the virtual asset space.

The call for dialogue signals an intent to address complexities through targeted reviews rather than broad decisions. PVARA has not indicated changes to its licensing timeline following the meeting.