Pakistan is facing fresh debate over the treatment of digital assets after a Sharia ruling classified USDT and other cryptocurrencies as assets not recognized as wealth under Islamic law. Following a meeting with Islamic scholar Mufti Taqi Usmani, Bilal bin Saqib, chairman of Pakistan’s Virtual Assets Regulatory Authority, said stablecoins, tokenized real-world assets, and other blockchain products should not be grouped together and instead need separate technical and Sharia reviews.
The comments came after Usmani and other scholars issued a religious ruling stating that transactions using USDT and other cryptocurrencies to purchase physical goods or digital services are invalid. The issue matters because Pakistan has already moved to build a legal structure for the sector. In March this year, the country passed its Virtual Assets Act, requiring exchanges, custodians, and token issuers to keep their operations Sharia-compliant under guidance from a council of Islamic finance scholars. Pakistan is also working on a sovereign stablecoin, tokenization of state assets, and licenses for crypto trading platforms.
Pakistan regulator pushes for separate reviews of blockchain products
Pakistan’s digital asset regulatory debate has intensified after Bilal bin Saqib, chairman of the country’s Virtual Assets Regulatory Authority, said stablecoins, tokenized real-world assets, and other blockchain products should be assessed separately on both technical and Sharia grounds rather than treated as a single category.
He made the remarks after meeting Islamic scholar Mufti Taqi Usmani.
Earlier Sharia ruling covered USDT and other cryptocurrencies
Before those comments, Usmani and other scholars had issued a Sharia ruling saying USDT and other cryptocurrencies are not recognized as wealth under Islamic law. The ruling also said transactions using them to buy physical goods or digital services are invalid.
Virtual Assets Act passed in March
Pakistan passed its Virtual Assets Act in March this year. The law requires exchanges, custodians, and token issuers to ensure their businesses comply with Sharia under the guidance of a council of Islamic finance scholars.
The country is also moving ahead with a sovereign stablecoin, tokenization of national assets, and licensing for crypto trading platforms.
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