Pakistan's Crypto Regulators Face Off Against Islamic Scholars Over Digital Assets

Pakistan's Virtual Assets Regulatory Authority (PVARA) is facing a conflict between its goal to establish a regulated crypto market and religious norms that prohibit cryptocurrency purchases under Islamic law.

The issue arose after PVARA chairman Bilal bin Saqib met with influential Islamic scholar Mufti Taqi Usmani, who backed a ruling that digital assets are not considered recognized property or wealth in Islam.

The ruling was signed by six scholars from Jamia Darul Uloom Karachi and states that purchasing cryptocurrencies, including stablecoins like USDT, is not permissible under Islamic law.

Saqib did not challenge the ruling but proposed continued discussion on the distinctions between different categories of digital assets.