Pakistan regulator meets Islamic scholar over crypto fatwa

Pakistan ranks third globally in the 2025 Chainalysis Global Crypto Adoption Index, with roughly 40 million users engaged in digital assets as of mid-2026. That's about one in six Pakistanis. The country's Virtual Assets Act 2026, passed in March, established PVARA as a permanent federal authority with the power to license virtual asset service providers. The law also mandated the creation of a Shariah Advisory Committee, suggesting legislators anticipated exactly this kind of tension between digital finance innovation and Islamic legal principles.

In April, the State Bank of Pakistan permitted licensed VASPs to open bank accounts. For years, Pakistani crypto users operated in a gray zone where exchanges couldn't access the banking system. Allowing bank account access moves crypto businesses from the shadows into the formal economy.

No immediate price impacts on specific tokens were observed following the fatwa or the meeting. Stablecoins face the most direct scrutiny. USDT was specifically named in the ruling, raising questions about whether other stablecoins or tokenized assets could be structured differently to satisfy Islamic requirements.

The Shariah Advisory Committee, once constituted, will likely issue rulings that carry significant weight for both local exchanges and international protocols. Saqib's push for ongoing dialogue suggests he understands a confrontational approach would not work.