- Pakistan’s digital assets regulator has called for ongoing consultations with Islamic scholars and industry specialists following a recent fatwa labeling cryptocurrency as “haram.”
A recent fatwa—a binding legal opinion based on Sharia law—has ignited significant debate regarding the legitimacy of cryptocurrencies. Mufti Taqi Usmani, a prominent Islamic scholar and former judge of the Federal Shariat Court, has officially declared these digital assets “impermissible” (haram).
In response to increasing calls for a thorough evaluation of the Sharia status of crypto, Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), has engaged in direct discussions with the scholar.
Sharia Law Prohibits Crypto for Goods and Services Purchases
In a fatwa released on Friday, Usmani ruled that cryptocurrencies cannot be classified as “maal” (wealth). Consequently, he determined it is not permissible to use them for the purchase of goods.
The scholar’s declaration was informed by extensive research and the opinions of various experts. The ruling originated from an inquiry regarding the validity of purchasing books using cryptocurrency. Because he views cryptocurrency as “merely the recording of fictitious numbers in an account,” he declared such transactions void. Under this ruling, goods must be returned to the seller, and the buyer is prohibited from reselling them.
Usmani’s ruling extends to services as well, stating that paying for an educational course with crypto is invalid and constitutes a violation of Sharia law. Furthermore, the benefits derived from such a course should not be utilized or shared, and digital course materials remain the property of the seller and must be “completely deleted.”
Notably, Usmani’s broad pronouncement included stablecoins, specifically mentioning Tether’s USDT.
PVARA Urges Reevaluation
Saqib noted that he has held a “constructive discussion” with Usmani regarding digital assets, focusing specifically on their Sharia compliance.
The PVARA chairman has urged continued engagement between Sharia scholars, regulators, and industry experts to re-examine Pakistan’s regulatory stance on crypto. The goal is to ensure the sector is managed through a balance of Islamic principles and a sophisticated understanding of emerging technologies.
Saqib emphasized that blockchain, digital assets, stablecoins, and tokenized real-world assets (RWAs) represent a wide spectrum of technology. Because they possess diverse features and use cases, he argued they require “careful technical assessment” rather than being “viewed through a single lens.”
Nevertheless, Saqib expressed agreement with the scholars’ primary objective: protecting Pakistani consumers from scams, exploitation, and financial harm.
Cryptocurrency Adoption in Pakistan
Pakistan remains a global leader in cryptocurrency adoption, ranking third in the Chainalysis 2025 Global Crypto Adoption Index Top 20. It follows the US on the list and ranks second in Asia, trailing only India.
Estimates from Triple A suggest that approximately nine million people in Pakistan, or 4.1% of the population, own cryptocurrency. Furthermore, former Binance CEO Changpeng “CZ” Zhao serves as a strategic advisor to Pakistan’s crypto council, signaling the nation’s commitment to scaling its Web3 ecosystem on a global scale.
