Pakistan's encryption law ruling triggered a dispute over the regulatory framework for digital assets

On 13 July, it was reported by The Block that Bilal bin Saqib, Chairman of the Virtual Assets Control Authority of Pakistan, had met with Mufti Taqi Usmani, an Islamic scholar, and had stated that stabilization currency, monetization of RWA and other block chain products should be subject to separate technical and sharia assessments and should not be considered the same category. Prior to this, scholars such as Usmani issued a Shariah ruling finding that USDT and other encrypted currencies did not belong to the assets recognized by the sharia, and that transactions for the purchase of real goods or digital services were invalid. Previously, in March of this year, Pakistan passed the Virtual Assets Act, which requires exchanges, trustees and issuers of coins to ensure compliance with sharia law under the guidance of the Islamic Committee of Financial Scholars. At the same time, the country is moving forward with the legalization of its sovereign and national assets and the authorization of a platform for encrypted transactions。