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Pakistan's Fatwa on Cryptocurrency Sparks Debate Over Digital Asset Regulatory Framework
Svmuu News: Following a meeting with Islamic scholar Mufti Taqi Usmani, Bilal bin Saqib, Chairman of Pakistan’s Virtual Assets Regulatory Authority, stated that stablecoins, tokenized real-world assets (RWAs), and other blockchain products should undergo separate technical and Sharia assessments and should not be treated as a single category. Previously, Usmani and other scholars issued a fatwa ruling that USDT and other cryptocurrencies do not constitute wealth recognized under Sharia law, and that transactions using them to purchase physical goods or digital services are invalid. Pakistan passed the Virtual Assets Act in March of this year, requiring exchanges, custodians, and token issuers to ensure their operations comply with Sharia law under the guidance of a committee of Islamic finance scholars. At the same time, the country is moving forward with plans for a sovereign stablecoin, the tokenization of national assets, and the licensing of cryptocurrency trading platforms.
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