Pakistan’s Crypto Regulator Defends Position Amid Haram Fatwa

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• Pakistan’s digital assets regulator urged continued discussions with Islamic scholars and industry experts after a recent fatwa declared crypto “haram.”

A recent fatwa, an authoritative opinion based on sharia law, has triggered a major debate on cryptocurrencies. Mufti Taqi Usmani, a renowned Islamic scholar and former judge of the Federal Shariat Court, declared these digital assets “impermissible” (haram).

Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), later engaged with the scholar amid calls for further evaluation of crypto’s sharia status.

Crypto is Haram in the Purchase of Goods and Services Under Sharia Law

In a fatwa published on Friday, Usmani ruled that people should not treat crypto as “maal” (wealth). Hence, it’s not permissible for a person to use it for purchasing goods.

ADVERTISEMENTThe scholar cited research and other experts’ opinions in his declaration. His statement came in response to a recent inquiry asking whether purchasing books with crypto is valid. Since he believes that crypto is “merely the recording of fictitious numbers in an account,” he ruled the transaction void. With that, one must return the books in question to the seller and must not resell them.

Usmani’s pronouncement also affects services, saying that even an educational course paid for with crypto is invalid and a violation of sharia law. As a result, lessons learned from such a course should not be used or shared with others. Digital forms of the course likewise remain the seller’s property; thus, one must “completely delete” the files related to it.

Interestingly, Usmani made the sweeping remark to include stablecoins, particularly Tether’s USDT.

ADVERTISEMENT## PVARA Calls for Reconsideration

Saqib revealed that he had a “constructive discussion” with Usmani on digital assets. The conversation particularly focused on their sharia status.

The PVARA chair urged continued engagement among sharia scholars, regulators, and industry experts to reexamine Pakistan’s approach to crypto. Additionally, it’s to ensure that the sector is guided by a balance of Islamic principles and a comprehensive understanding of emerging technologies.

Saqib explained that blockchain, digital assets, stablecoins, and tokenized real-world assets (RWAs) represent a broad spectrum of technologies. Moreover, he highlighted that they have varying features and use cases, so they merit “careful technical assessment” and must not be “viewed through a single lens.”

Nonetheless, Saqib agreed with scholars’ fundamental objective of safeguarding Pakistani consumers from scams, exploitation, and other forms of financial harm.

Pakistan’s Crypto Adoption

Pakistan remains one of the world’s crypto hotbeds, ranking third in Chainalysis’ 2025 Global Crypto Adoption Index Top 20. It’s next to the US on the list and second in Asia, after India.

Triple A estimates that nine million, or 4.1% of Pakistanis, own crypto. Meanwhile, it’s worth noting that former Binance CEO Changpeng Zhao even serves as a strategic advisor to Pakistan’s crypto council, indicating that the country is serious about scaling its Web3 ecosystem globally.

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