Pakistan Crypto Chief Seeks Religious Dialogue Over Crypto Payments Ban

Pakistan has a large cryptocurrency market, with annual trading volume of $250 billion–$300 billion and about 40 million users. The government established the Pakistan Virtual Assets Regulatory Authority (PVARA) in 2025 to advance regulation. But in Pakistan, where national law is rooted in Islamic law, whether digital assets comply with Sharia directly affects policy implementation. Religious scholars’ views are therefore a key constraint on the country’s efforts to legalize cryptocurrency.

Darul Uloom Karachi issued a fatwa on June 10, 2026, declaring Bitcoin, Ether and Tether (USDT) noncompliant with Sharia and prohibiting their use for payments. In response, PVARA Chairman Bilal bin Saqib met Islamic scholar Usmani on July 11 to seek continued dialogue. He proposed separate technical and Sharia assessments of blockchain, stablecoins and tokenized real-world assets to avoid a blanket ban.