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Pakistan regulator seeks crypto dialogue after Islamic ruling against purchases with digital assets

Pakistan regulator seeks crypto dialogue after Islamic ruling against purchases with digital assets

A new fatwa from Mufti Muhammad Taqi Usmani says trading cryptocurrencies including Bitcoin, Ether and USDT is haram, widening tensions with Pakistan’s planned 2026 crypto regulatory rollout.

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Fact Check
Every element of the claim is corroborated by primary and independent sources. Saqib's own X post confirms he met Usmani and called for continued dialogue, framing blockchain, stablecoins and tokenized real-world assets as requiring distinct technical/Shariah review. The Dawn primary report documents the fatwa by Usmani and five scholars ruling crypto-based purchases impermissible. Cointelegraph, crypto.news and Tribune independently confirm the meeting and Saqib's category-by-category Shariah-review stance as Pakistan builds a licensed virtual-asset market under the Virtual Assets Act 2026.
Summary

Pakistan’s debate over digital assets under Islamic law has intensified after Mufti Muhammad Taqi Usmani issued a fatwa saying trading cryptocurrencies including Bitcoin, Ether and USDT is haram. The opinion goes further than an earlier June 10, 2026 ruling from Darul Ifta at Jamia Darul Uloom Karachi, which said purchases made with cryptocurrency were not permitted because current research did not establish crypto as recognized property or wealth, describing it as “merely the recording of fictitious numbers in an account.” The new fatwa says crypto assets do not qualify as “property” in Islamic jurisprudence, deepening tensions with Pakistan’s push to build a licensed virtual-asset market in 2026. Pakistan Virtual Assets Regulatory Authority chairman Bilal bin Saqib said after a July 11 meeting with Usmani that blockchain, stablecoins, tokenized real-world assets and other digital assets should be examined category by category with technical and Shariah review rather than through one broad judgment. The dispute lands as Pakistan advances the Virtual Assets Act 2026, banking access for licensed firms and policy work involving tokenized state assets and stablecoin-based cross-border payments.

Terms & Concepts
  • stablecoins: Digital tokens designed to maintain a stable value, often by being linked to another asset.
  • tokenized real-world assets: Traditional assets such as bonds or commodities represented as digital tokens.
  • virtual-asset market: A regulated market for businesses and investors dealing in digital assets and related services.