Pakistan seeks Shariah guidance for digital assets as crypto license applications rise

Pakistan is establishing a Shariah Advisory Board to provide religious guidance on digital and virtual assets, ensuring transactions align with Islamic principles. Bilal bin Saqib, Chairman of the Pakistan Virtual Asset Regulatory Authority (PVARA), stated that the government is consulting with the Grand Mufti of Pakistan to oversee these matters.

In addition to religious compliance, the government aims to utilize digital remittances to reduce transaction costs by one percentage point. This reduction from the current 6.5% could save approximately $410 million, benefiting overseas Pakistanis and increasing the volume of funds entering the country. Saqib noted that Pakistan has the capacity to accommodate roughly 40 million digital asset users.

On the regulatory front, PVARA has received 70 applications for crypto licenses from both local and international companies within six months of the virtual assets law passing Parliament. Major global exchanges, including Binance, are expected to be among the applicants. The regulator intends to attract established global players while providing a structured path for local businesses to enter the industry.