Following Mufti Taqi Usmani’s recent fatwa declaring cryptocurrency impermissible for transactions, Bilal Bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), has emphasized the need for a thorough technical and Shariah-based review of digital assets. He stressed that Pakistan’s regulatory approach must safeguard citizens from fraud and financial harm while also considering the implications of emerging technologies.
After meeting with the esteemed Islamic scholar, Saqib described their discussion on digital assets and their status under Islamic law as constructive. Both parties agreed on the primary goal of protecting Pakistanis from exploitation and financial loss related to these new financial instruments.
Mufti Usmani’s fatwa, issued on June 10, 2026 (24 Zilhaj 1447 AH) by Darul Ifta, Jamia Darul Uloom Karachi, along with five other prominent scholars, declared the use of cryptocurrency for purchasing goods and digital services as impermissible. The fatwa specifically addressed transactions involving cryptocurrencies such as USDT and other tokens, concluding that crypto does not meet the Shariah criteria for “maal” or wealth. Instead, it described cryptocurrencies as mere records of fictitious numbers, meaning buyers do not legally own items bought with crypto under Islamic law.
The fatwa further instructed that books purchased with cryptocurrency must be returned and not used or resold. Similarly, digital courses acquired through crypto transactions were deemed invalid, with buyers advised to neither use nor share the content and to delete all related files from their devices.
In response, Saqib highlighted the diversity within blockchain technologies, digital assets, stablecoins, and tokenized real-world assets, noting that these require a nuanced and detailed examination. He argued that these instruments should not be evaluated through a single perspective but rather through a combination of technical expertise and rigorous Shariah scrutiny.
Looking ahead, Saqib expressed his commitment to ongoing dialogue among respected scholars, regulators, and industry experts. He underscored that Pakistan’s policy framework should be shaped by Islamic principles alongside a comprehensive understanding of innovative financial technologies.
