Pakistan’s virtual-assets regulator has called for continued dialogue on how to treat digital assets after meeting an Islamic scholar who supported a ruling against using cryptocurrency for purchases.
Regulator seeks engagement with religious authorities
The call for dialogue follows a meeting between the regulator and an Islamic scholar who endorsed a position that crypto-based payments should not be permitted. The regulator signaled that sustained engagement with religious scholars, financial institutions, and industry participants is needed to address concerns while shaping a coherent policy approach to digital assets.
Debate over crypto payments in Islamic finance
In Islamic finance, rulings on permissibility play an important role in product design and market adoption. Critics of crypto payments often cite issues such as excessive speculation, uncertainty, and potential for abuse, while supporters argue that certain digital assets can function as commodities or payment instruments under defined conditions. The latest stance against crypto purchases highlights the continuing split over how these assets fit within Sharia-compliant frameworks.
Policy context in Pakistan
Pakistan does not yet have a comprehensive legal framework governing cryptocurrencies. The State Bank of Pakistan has previously warned the public about risks and restricted regulated institutions from dealing in virtual currencies and related tokens. Various agencies have also underscored the need to address consumer protection, anti–money laundering, and counter–terrorist financing standards as part of any eventual policy.
What to watch
- Whether authorities work with religious scholars to distinguish between investment, trading, and payments use cases for digital assets.
- Potential guidance on classification of tokens and rules for exchanges, custody, and payments.
- Updates on consumer protection and AML/CFT requirements tied to any future framework.
No timeline for policy changes has been disclosed, but the regulator’s comments suggest consultations will continue as authorities seek a position that balances market development with Sharia considerations and financial stability.