Pakistan's Crypto Regulator Tackles Islamic Law Conundrum

Pakistan's Virtual Assets Regulatory Authority (PVARA) is navigating a complex issue as it tries to create a digital asset framework in a country where Islamic law holds significant weight. The regulator met with renowned Islamic scholar Mufti Muhammad Taqi Usmani around July 11 to discuss the treatment of digital assets under Shariah law.

The meeting followed a fatwa issued on June 10 that declared purchases of goods using digital assets, including stablecoins like USDT, impermissible under Islamic principles. The core issue is that the fatwa classified digital assets as failing to qualify as legitimate wealth, or 'maal,' under Shariah law.

PVARA Chairman Bilal Bin Saqib emphasized the need for continuous dialogue between regulatory bodies, Islamic scholars, and industry professionals to ensure that blockchain technologies and digital assets receive proper assessment for Shariah compliance. He acknowledged that a blanket dismissal of digital finance innovation is not viable.