Pakistan’s crypto regulator has opened a religious review of digital assets after a leading Islamic scholar ruled that purchases using USDT and other cryptocurrencies are impermissible under
Pakistan’s crypto regulator has opened a religious review of digital assets after a leading Islamic scholar ruled that purchases using USDT and other cryptocurrencies are impermissible under Shariah law.
Bilal Bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority, met Mufti Muhammad Taqi Usmani to discuss the treatment of blockchain products as the government builds a licensed market for crypto exchanges and other service providers.
Saqib said digital assets should not be placed under a single religious classification, arguing that stablecoins, tokenized real-world assets and blockchain infrastructure carry different structures and use cases.
“These technologies merit careful technical assessment alongside rigorous Shariah examination,” Saqib said. The two sides agreed to continue discussions involving scholars, regulators and industry specialists.
The dispute follows a June 10 fatwa issued by Darul Ifta at Jamia Darul Uloom Karachi and signed by Usmani and five other scholars.
The ruling rejected purchases made with cryptocurrencies after concluding that digital tokens do not qualify as “maal,” or recognized wealth, under its interpretation of Islamic law. USDT and other crypto tokens were placed in the same category.
“It is not permissible for you to purchase the books in question using cryptocurrency,” the ruling said in response to a question about paying for goods with digital assets.
The fatwa also rejected access to an educational course purchased with cryptocurrency. Usmani previously served as a judge on Pakistan’s Federal Shariat Court and remains one of the country’s most influential scholars in Islamic finance.
Pakistan enacted the Virtual Assets Act in 2026 and has allowed banks to open accounts for licensed virtual asset service providers, reversing restrictions imposed in 2018.
Banks must verify PVARA licenses, hold customer funds in segregated non-interest-bearing rupee accounts and maintain anti-money-laundering controls. They cannot invest in virtual assets with their own funds or on behalf of customers.
Binance and HTX have received initial clearance to enter the licensing process, while a Binance agreement covers the possible tokenization of up to $2 billion in Pakistani assets.
The government also signed an agreement with a World Liberty Financial affiliate to examine USD1 for cross-border payments. Pakistan receives more than $36 billion in annual remittances and is already part of a wider shift toward regulated tokenized payment rails.
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