Pakistan’s Virtual Assets Regulatory Authority is pushing for a more granular approach to digital assets after a religious ruling said crypto-based purchases do not comply with Islamic law. PVARA chairman Bilal bin Saqib asked Jamia Darul Uloom Karachi to clarify the distinction between speculative cryptocurrencies and asset-backed digital tokens. The ruling stemmed from a query about paying for books and online courses with crypto. JS Global Capital research head Waqas Ghani said the decision could slow bank-led crypto adoption in Pakistan, though trading volumes have not been affected so far. Saqib said the regulator is working with scholars to assess digital assets by category rather than treating them as one class, pointing to blockchain-recorded Islamic bonds, gold-backed tokens and fully reserved stablecoins as examples tied to redeemable or income-generating assets.
Pakistan’s Virtual Assets Regulatory Authority (PVARA) is seeking a clearer distinction between speculative cryptocurrencies and asset-backed digital tokens after a religious ruling said crypto-based purchases do not comply with Islamic law.
Bilal bin Saqib, chairman of PVARA, asked Jamia Darul Uloom Karachi to clarify the difference between the two categories. The ruling in question concerned a query about using cryptocurrency to pay for books and online courses.
Waqas Ghani, head of research at JS Global Capital, said the ruling could hinder bank-led crypto adoption in Pakistan, although trading volumes have not been affected so far.
PVARA says digital assets should be reviewed by type
Saqib said PVARA is working with scholars to evaluate digital assets category by category rather than treating them as a single class.
He said blockchain-recorded Islamic bonds represent ownership in real income-generating assets. He also said gold-backed tokens and fully reserved stablecoins correspond to redeemable value.
By contrast, Saqib said speculative tokens without underlying assets raise a different set of issues, adding that scholars’ concerns should be taken seriously.
PVARA said it will continue working with scholars as Pakistan develops a licensing framework and advances work on stablecoins and tokenization of real-world assets.
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