Pakistan crypto fatwa and regulator dialogue

On 9 July 2026 Mufti Muhammad Taqi Usmani issued a fatwa declaring cryptocurrency trading haram, arguing that digital tokens do not satisfy the Sharia definition of property. The ruling quickly entered the public debate.

Two days later, PVARA chairman Bilal Bin Saqib met Usmani. The discussion reaffirmed the fatwa but opened a technical‑Sharia dialogue, with Saqib stressing that blockchain platforms, digital assets, stablecoins and tokenised real‑world assets each need separate technical assessments and a comprehensive Sharia review. Usmani specifically named Bitcoin, Ethereum and the stablecoin USDT as haram.

The regulator highlighted that the Virtual Assets Act 2026 created PVARA, which now licenses virtual‑asset service providers and has secured bank‑account access for them. Pakistan, with roughly 40 million users, ranks third globally in crypto adoption. Both parties stressed ongoing cooperation among scholars, policymakers and industry experts to protect citizens from fraud and financial harm while seeking Sharia‑compliant ways to integrate digital assets into the formal economy.

No immediate market impact was observed, but the dialogue frames the future regulatory landscape. PVARA continues to pursue a regulated digital‑asset framework and aims to position Pakistan as a hub for blockchain‑based finance, even as the fatwa remains in force and shapes public perception of crypto trading in the country.