After a meeting with the scholar Mufti Taki Usman, the Chairman of the Virtual Assets Control Authority of Pakistan, Bilal Ben Sakib, called for continued discussion of digital assets under the Islamic legal framework. He stated that the common goal of both sides was to protect the Pakistani population from fraud and financial damage.
Sakib mentioned that Pakistan ' s encryption regulation should focus on technical and sharia review rather than on a single digital asset award. The Usman ruling rejected the encrypted purchase, arguing that the token lacked recognized Islamic wealth status.
In a public statement, Sakib pointed out that digital assets such as block chains, stable coins and real assets of monetization covered different technologies and uses and required “a careful technical assessment and a rigorous sharia review”. He called for further exchanges among academics, regulators and industry experts.
The meeting followed a ruling of Islamic law issued by Darul Ifta. It stated that the purchase of encrypted money, including USDT, was not permitted under its interpretation of Islamic law.
Pakistan is promoting a regulated virtual asset market, and the Virtual Assets Act established PVAA in 2026 to license and supervise virtual asset service providers. PVARA also conducted public consultations on the rules of providers such as exchanges, custodians, brokers, issuers of coins, etc.
On 15 April 2026, the Central Bank of Pakistan allowed banks to open accounts for companies licensed by PVARA. Central Bank circulars require banks to verify licences, conduct due diligence, monitor accounts and separate client funds from company funds. Banks may not use their own capital or customer deposits for virtual asset transactions or holdings.
Pakistan has also explored the stabilization of currency and monetization assets through agreements with international companies. In December 2025, the Government signed a non-binding agreement with coins to study the possibility of monetizing State assets valued at up to $2 billion. Another January 2026 agreement involved a study of the feasibility of using USD1 stabilization currency for cross-border payments. These projects still require regulatory compliance, technical review and formal approval.
This controversy about encrypted payments has added religious censorship to the regulatory process in Pakistan. PVARA has not announced any changes to the licensing rules after the meeting, and Sakib ' s statement leaves room for discussion, while regulators continue to draft operational standards. The decision did not change the State licensing rules, and licensed companies remain subject to the Virtual Asset Law and Central Bank control.