Pakistan's Crypto Fatwa Sparks Debate on Digital Asset Regulatory Framework

Odaily Planet Daily News: After meeting with Islamic scholar Mufti Taqi Usmani, Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority, stated that stablecoins, tokenized RWAs, and other blockchain products should each undergo technical and Shariah assessments, and should not be treated as a single category. Previously, scholars including Usmani issued a fatwa deeming USDT and other cryptocurrencies as not recognized as wealth under Shariah law, rendering transactions made with them to purchase physical goods or digital services invalid. Pakistan passed the "Virtual Assets Act" in March this year, requiring exchanges, custodians, and token issuers to ensure Shariah compliance under the guidance of an Islamic financial scholars committee. Meanwhile, the country is advancing the development of a sovereign stablecoin, the tokenization of national assets, and the licensing of crypto trading platforms.