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Pakistan’s virtual asset regulator has called for talks with Islamic scholars after a religious ruling said crypto payments, including USDT purchases, are impermissible under Shariah law.
Bilal bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority, met Mufti Muhammad Taqi Usmani on July 11 as Pakistan continues work on licensing crypto businesses.
June 10 Ruling Rejects USDT as Recognized Wealth
The ruling was issued by Darul Ifta at Jamia Darul Uloom Karachi on June 10 and signed by Usmani, a former Federal Shariat Court judge, and five other scholars. It said cryptocurrencies do not qualify as “maal,” or recognized wealth, under its interpretation of Islamic law.
The ruling described tokens as records of fictitious account numbers and said goods bought with crypto did not validly transfer to the buyer. The finding applied to USDT and other digital tokens.
Saqib Calls for Ssset-By-Asset Review
Saqib described his meeting with Usmani as constructive and said both sides agreed on the need to protect Pakistanis from fraud, exploitation and financial harm.
He argued that blockchain networks, cryptocurrencies, stablecoins and tokenized real-world assets involve different technologies and commercial uses.
Each category should receive a technical assessment and a Shariah review, rather than being treated as a single asset class, he said.
Licensing Continues Under 2026 Law
Saqib did not announce a challenge to the ruling or a formal religious review. He instead called for more engagement among scholars, regulators and industry specialists as Pakistan develops its digital asset policy.
The religious ruling has not been presented as changing Pakistan’s licensing framework. The Virtual Assets Act 2026 established PVARA as the federal body responsible for licensing and supervising exchanges, custodians, token issuers and other virtual asset service providers.
PVARA Rules Remain in Development
PVARA is accepting applications for no-objection certificates before full licensing. Draft rules published in June cover governance, client protection, cybersecurity, asset segregation and anti-money laundering controls.
The regulator has not announced any change to that process following Saqib’s meeting with Usmani. Further consultation is expected as PVARA continues drafting operating rules for licensed firms.
