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Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin Saqib emphasized the importance of a cautious, technical review of blockchain and digital assets, highlighting their diverse range of technologies and applications.
On X, Saqib shared that he had a productive conversation with Mufti Muhammad Taqi Usmani, president of Wifaq-ul-Madaris Al-Arabia Pakistan and Darul Uloom Karachi. Previously, Mufti Usmani stated that purchasing goods with cryptocurrency isn’t permissible under Islamic law (Shariah).
Saqib conveyed that he discussed the legal and religious standings of digital assets with Mufti Usmani, pointing out that blockchain technology, stablecoins, tokenized assets, and other digital tools encompass a broad array of use cases and technological advancements. He stressed that such innovations deserve thorough technical analysis and careful Shariah scrutiny instead of being viewed narrowly.
He further expressed his hope for ongoing collaborations between scholars, regulators, and industry leaders to shape Pakistan’s approach to emerging digital technologies, ensuring it aligns with Islamic principles and comprehensive technological understanding.
This statement followed Mufti Usmani’s fatwa, which declared that cryptocurrencies do not constitute property or wealth (maal) in Islamic law, but rather are records of hypothetical numerical entries in accounts, based on expert opinions. The fatwa clarified that purchases made with cryptocurrencies, including USDT or other tokens, are not permissible under Islamic law.
The fatwa responded to a question about the validity of transactions using crypto. The inquirer had bought two books, one with a crypto token and another with USDT, and sought guidance on their religious acceptability. Mufti Usmani ruled that returning the books was necessary since buying with cryptocurrency is forbidden. He also stated that paying for educational courses via crypto is impermissible and, given the legal concerns, advised the individual to delete the digital course permanently and refrain from benefiting from it.
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