Renowned Islamic scholar Mufti Muhammad Taqi Usmani is helping efforts to establish a Shariah Advisory Board for cryptocurrencies and digital assets in Pakistan, as the country works on developing a formal regulatory framework for the emerging sector.
The initiative follows a meeting between Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin Saqib and Mufti Taqi Usmani to discuss the Islamic status of cryptocurrencies, stablecoins, blockchain-based products and other digital assets.
The discussions come at a sensitive time for Pakistan’s crypto industry, as regulators seek to encourage innovation while ensuring consumer protection and compliance with Islamic principles.
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Key Takeaways
- Mufti Taqi Usmani has held discussions on the Shariah status of digital assets.
- PVARA is working toward a Shariah Advisory Board for cryptocurrencies and related technologies.
- The proposed framework may assess different digital assets individually.
- Blockchain, stablecoins and tokenised real-world assets may require separate evaluations.
- A June 2026 fatwa associated with Mufti Taqi Usmani declared crypto-based purchases impermissible.
- The fatwa stated that cryptocurrencies did not qualify as maal, or recognised wealth, under Shariah based on expert assessments available at the time.
PVARA Seeks Detailed Shariah Review
Bilal Bin Saqib said the meeting with Mufti Taqi Usmani was constructive and focused on the evolving debate surrounding digital assets and their compatibility with Islamic principles.
According to Saqib, blockchain technology, digital assets, stablecoins and tokenised real-world assets represent a broad range of technologies and use cases.
He emphasized that these instruments should not necessarily be treated as one uniform category. Instead, each asset may require a detailed technical assessment alongside a rigorous Shariah examination.
Saqib said both sides shared the objective of protecting Pakistanis from fraud, exploitation and financial harm while ensuring that future policies are based on a proper understanding of both technology and Islamic jurisprudence.
Proposed Shariah Advisory Board for Digital Assets
The proposed Shariah Advisory Board is expected to help provide religious and ethical guidance as Pakistan develops rules for cryptocurrencies and other virtual assets.
Such a board could potentially examine:
- Cryptocurrency trading and ownership
- Stablecoins
- Asset-backed digital tokens
- Tokenised real-world assets
- Blockchain-based financial products
- Digital payment instruments
- Crypto exchange activities
- Shariah-compliant investment structures
The board could also help regulators distinguish between highly speculative digital currencies and assets backed by identifiable commodities, real-world assets or regulated financial arrangements.
June 2026 Fatwa Declared Crypto Purchases Impermissible
The development follows a fatwa issued by Darul Ifta, Jamia Darul Uloom Karachi, dated June 10, 2026.
The ruling, associated with Mufti Taqi Usmani and several other prominent scholars, stated that purchasing goods and services through cryptocurrency was not permissible under Shariah.
The fatwa was based on research and expert opinions available to the scholars at the time, which concluded that cryptocurrencies did not qualify as maal, meaning recognised wealth or property under Islamic law.
The ruling specifically referred to payments made through USDT and other crypto tokens. It also stated that buyers did not technically acquire lawful ownership of goods through such transactions under the stated reasoning.
Difference Between Speculative Crypto and Asset-Backed Tokens
The discussion between PVARA and Mufti Taqi Usmani indicates that Pakistan may explore a more detailed, asset-by-asset approach rather than treating every blockchain-based product in the same way.
For example, speculative cryptocurrencies, stablecoins backed by reserves, gold-backed tokens, sukuk-linked instruments and tokenised real-world assets may have different legal, economic and Shariah characteristics.
PVARA has argued that these differences should be examined carefully before a final policy position is developed.
This approach could become particularly important as Pakistan explores stablecoins, digital payments and the tokenisation of real-world assets.
Pakistan Develops Its Crypto Regulatory Framework
Pakistan is currently working to establish a regulated environment for virtual assets, including licensing and oversight mechanisms for crypto exchanges, custodians and token issuers.
The regulatory process is intended to reduce risks associated with fraud, money laundering, consumer exploitation and unregulated trading while providing space for responsible innovation.
However, the country’s regulatory framework must also account for Islamic principles, given the importance of Shariah considerations in Pakistan’s financial and legal environment.
The involvement of prominent scholars could help policymakers develop a framework that is more acceptable to religious authorities, financial institutions and the public.
Potential Role of Islamic Finance
A Shariah Advisory Board could create opportunities for developing Islamic digital finance products in Pakistan.
Potential areas may include:
- Shariah-compliant digital investment products
- Asset-backed tokens
- Tokenised sukuk
- Gold-backed digital assets
- Blockchain-based zakat and charitable payment systems
- Islamic trade-finance platforms
- Regulated digital payment solutions
However, each product would require independent review based on its underlying asset, ownership structure, risk profile, purpose and method of operation.
No Confirmation of a Revised Fatwa Yet
The meeting does not mean that Mufti Taqi Usmani has withdrawn or formally revised the June 2026 fatwa.
PVARA Chairman Bilal Bin Saqib called for continued engagement among scholars, regulators and industry experts, but no formal announcement has confirmed a change in the scholar’s earlier position.
The discussions instead appear to be part of a broader effort to understand whether different categories of digital assets should be assessed separately under Shariah.
Why This Matters for Pakistan
The establishment of a Shariah Advisory Board could have a major impact on Pakistan’s digital asset market.
It may help:
- Improve public confidence in crypto regulation
- Provide clarity to investors and businesses
- Guide Islamic financial institutions
- Support development of Shariah-compliant digital products
- Reduce uncertainty around asset-backed tokens
- Help regulators distinguish legitimate innovation from speculative activity
- Align digital finance policies with Islamic principles
At the same time, unresolved questions about whether cryptocurrencies qualify as maal could continue to influence public adoption and institutional participation.
Frequently Asked Questions
What is the proposed Crypto Shariah Advisory Board?
It is a proposed body that would examine cryptocurrencies and other digital assets from an Islamic legal and ethical perspective and provide guidance to regulators and industry participants.
Who is helping establish the board?
PVARA Chairman Bilal Bin Saqib has been engaging with Mufti Muhammad Taqi Usmani on the Shariah status of digital assets and the need for detailed religious review.
What did the June 2026 fatwa say?
The fatwa stated that purchasing goods and services through cryptocurrency was impermissible based on the assessment that cryptocurrencies did not qualify as maal, or recognised wealth, under Shariah.
Has Mufti Taqi Usmani changed his position on cryptocurrency?
There has been no confirmed announcement that he has withdrawn or formally revised the June 2026 fatwa.
Will all digital assets be treated the same way?
PVARA has argued that blockchain, stablecoins, tokenised real-world assets and other digital products have different characteristics and should be assessed individually.
Why is the Shariah Board important?
The board could help Pakistan develop a crypto framework that balances technological innovation, consumer protection, financial stability and Islamic principles.
