After Jamia Darul Uloom Karachi deemed crypto-based purchases impermissible, regulator PVARA asked for guidance on distinguishing speculative tokens from asset-backed digital instruments as Pakistan develops crypto licensing rules.
Pakistan’s leading Islamic scholars remain divided over whether Bitcoin, stablecoins and other digital tokens comply with Shariah, complicating plans to formalize one of the world’s largest retail crypto markets. After Jamia Darul Uloom Karachi issued a June fatwa declaring cryptocurrency-based purchases impermissible under Islamic law, Pakistan Virtual Assets Regulatory Authority chair Bilal bin Saqib sought clarification on how to distinguish speculative cryptocurrencies from blockchain-recorded sukuk, gold-backed tokens, fully reserved stablecoins and other asset-backed digital instruments. PVARA said it is evaluating digital assets by category as it develops a licensing framework and advances work on stablecoins and real-world asset tokenization, while analysts warn the ruling could slow broader bank-led adoption even though trading volumes have so far remained steady.