PVARA Chairman Bilal Bin Saqib Seeks Clarification From Darul Uloom Karachi On Whether Sukuk Tokens And Stablecoins Can Be Treated Differently Under Shariah
According to Reuters, Pakistan’s virtual assets regulator has asked the country’s top Islamic seminary to draw a distinction between speculative cryptocurrencies and asset-backed digital tokens, after a fatwa issued last month declared crypto-based purchases impermissible under Shariah law.
Bilal bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), told Reuters he sought clarification after Darul Uloom Karachi ruled in June that cryptocurrency does not constitute recognised wealth under Islamic law and therefore cannot be used as a valid means of payment.
The fatwa was issued by a group of scholars including Mufti Muhammad Taqi Usmani, a leading global authority in Islamic finance, in response to a query about buying books and an online course with crypto.
Pakistan has been aggressively formalising its crypto sector; one of the world’s largest retail markets with over 240 million Muslims, pursuing exchange licences, tokenised state assets, and a stablecoin arrangement with an affiliate of World Liberty Financial, the Trump family’s crypto business, as part of its “crypto diplomacy” push toward Washington.
Saqib argues the question must be answered asset by asset. A blockchain-recorded sukuk represents real, income-generating assets, while gold-backed tokens and fully reserved stablecoins carry an enforceable claim on something tangible and redeemable. Purely speculative tokens are a separate matter, he says, and the scholars’ concerns there must be taken seriously.
The fatwa is not yet disrupting trading volumes. But it is exactly the kind of ruling that, if left unaddressed, stops bank-led adoption cold — and Pakistan cannot afford that outcome if it wants its crypto diplomacy to mean anything.
Check out our previous coverage of Pakistan affairs on The Trusted Times.
