Pakistan Crypto Regulator Seeks Shariah Guidance on Digital Assets

Pakistan's Crypto Czar Seeks Clarification on Shariah Compliance

The chairman of the country's Virtual Assets Regulatory Authority (PVARA), Bilal bin Saqib, has asked Jamia Darul Uloom to distinguish between speculative cryptocurrencies and asset-backed digital tokens. This request comes after the seminary issued a fatwa last month declaring that purchasing goods with cryptocurrency is impermissible under Islamic law.

The fatwa described cryptocurrency as 'merely the recording of fictitious numbers in an account', casting doubt on the government's rapid embrace of crypto in Pakistan, which has long been one of the world's largest markets by retail activity. Saqib said that the regulator is working with the seminary to assess digital assets individually and that blockchain itself is not a financial asset.

The PVARA chairman emphasized that 'the central question' raised by the fatwa is whether a digital asset constitutes recognized wealth under Shariah, and that this requires examination on a case-by-case basis. Saqib noted that tokens backed by real assets, such as gold or income-generating assets like sukuk, carry an enforceable claim and are thus distinct from purely speculative tokens.