Svmuu News: Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), has asked Jamia Darul Uloom Karachi to clarify the distinction between speculative cryptocurrencies and asset-backed digital tokens, following the religious institution’s ruling that cryptocurrency-based purchases are not compliant with Sharia law.
The ruling pertained to a consultation regarding the use of cryptocurrency to pay for books and online course fees. Waqas Ghani, Head of Research at JS Global Capital, stated that the ruling could hinder bank-led cryptocurrency adoption in Pakistan, though trading volumes have not yet been affected.
Saqib noted that PVARA is working with scholars to evaluate digital assets by category rather than treating them as a single class. He explained that blockchain-recorded Islamic bonds represent ownership of real-yield assets, while gold-backed tokens and fully-reserved stablecoins correspond to redeemable value.
He noted that speculative tokens without underlying assets fall into a separate category of concern, and scholars’ concerns must be taken seriously. PVARA will continue to collaborate with scholars as it develops a regulatory framework in Pakistan and advances efforts related to stablecoins and the tokenization of real-world assets.