The Pakistan Virtual Assets Regulatory Authority (PVARA) chairman, Bilal bin Saqib, has requested Jamia Darul Uloom to differentiate between speculative cryptocurrencies and asset-backed digital tokens.This follows a fatwa issued by Mufti Taqi Usmani and six others declaring crypto-based purchases impermissible under Islamic law.The fatwa has raised questions about the Shariah status of digital assets, prompting discussions between regulators and religious scholars.

Saqib emphasized the need to categorize digital assets individually, noting that blockchain itself is a record-keeping technology, not a financial asset.Asset-backed tokens and stablecoins, which have enforceable claims on tangible assets, are considered Shariah-compliant.However, purely speculative tokens without underlying assets remain a concern.

The regulator aims to develop a licensing framework that aligns with Islamic principles while advancing stablecoins and real-world asset tokenization.Experts warn that the fatwa could hinder broader crypto adoption in Pakistan, though trading volumes remain unaffected.The debate highlights Pakistan's potential to lead in Shariah-compliant digital finance through collaboration between regulators and scholars.