Regulatory Authority Chairman Urges Jamia Darul Uloom to Differentiate Speculative Cryptocurrencies from Asset‑Backed Tokens

PVARA Chairman Bilal bin Saqib has requested Jamia Darul Uloom to differentiate between speculative cryptocurrencies and asset‑backed digital tokens, the chief said Wednesday.

The regulatory chief told Reuters that he sought this clarification after the seminary ruled last month that crypto‑based transactions are not permissible under Islamic law.

This religious decree has cast doubt on the government’s swift embrace of cryptocurrency in Pakistan, a country that has long been counted among the world’s largest crypto markets by retail participation.

Mufti Taqi Usmani, together with six colleagues, issued a fatwa on June 10 declaring that buying goods with cryptocurrency is impermissible, describing it as “merely the recording of fictitious numbers in an account.”

Saqib said the regulator is consulting the seminary to evaluate digital assets by category rather than treating them as a single class.

‘The core issue the fatwa raises is whether a digital asset qualifies as recognized wealth under Shariah. That is precisely the right question, and it is why these instruments must be examined individually,’ he said.

He explained that a blockchain‑recorded sukuk, an Islamic bond, represents ownership of an actual income‑generating asset, whereas gold‑backed tokens or fully reserved stablecoins provide an enforceable claim on a tangible, redeemable asset.

The PVARA chairman added that blockchain is “a record‑keeping and verification technology, not a financial asset.”

Purely speculative tokens lacking any underlying asset constitute a separate matter, and “the scholars’ concerns must be taken seriously,” he said.

‘We will continue working closely with our scholars as Pakistan develops its licensing framework and advances work on stablecoins and real‑world asset tokenisation,’ he said.

‘Pakistan has the opportunity to lead the world in Shariah‑compliant digital finance, and that leadership must be built with our scholars.’

The edict, as it stands, could become “a hurdle to broader, bank‑led crypto adoption beyond Pakistan’s urban trading community,” said Waqas Ghani, head of research at JS Global Capital, a brokerage and investment banking firm.

So far, however, crypto trading volumes have remained unaffected, he said.

Last week, Saqib said he held a “constructive discussion” with Mufti Usmani regarding the Shariah status of digital assets.

The regulatory chief said he shared with Mufti Usmani that “blockchain, digital assets, stablecoins, and tokenised real‑world assets represent a broad spectrum of technologies and use cases.”

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