Pakistan’s Virtual Assets Regulatory Authority (PVARA), led by Bilal bin Saqib, has reached out for discussions following a significant ruling by Mufti Muhammad Taqi Usmani, a prominent Islamic scholar. Usmani issued a fatwa declaring cryptocurrency usage and payments as haram, or forbidden, under Shariah law, asserting that digital assets like Bitcoin and Ethereum do not qualify as maal or wealth. This decision could impact approximately 40 million Pakistanis currently using digital assets through informal channels, despite the ruling not being legally binding. The fatwa comes amid Pakistan’s efforts to regulate the crypto sector through the Virtual Assets Act 2026, raising potential tensions between religious beliefs and state regulatory ambitions.
The announcement has introduced uncertainty in the market, particularly affecting Bitcoin’s price expectations. Current market data shows a decline in confidence for Bitcoin remaining above key price thresholds by July 14, 2026. Notably, the probability of Bitcoin being above $62,000 has fallen from 92% to 86%, suggesting apprehension among market participants. The broader implications of aligning crypto regulations with Shariah principles could shape future market dynamics in the region.
Key Takeaways
- Market activity suggests that the fatwa may influence crypto usage among Pakistan’s 40 million digital asset users.
- Current pricing indicates diminished confidence in Bitcoin’s ability to maintain above $62,000 by July 14, 2026, dropping from 92% to 86%.
- The regulatory landscape in Pakistan may face challenges balancing religious edicts with the push toward formalizing cryptocurrency regulation.
What to Watch
The dialogue between PVARA and Islamic scholars could shape the regulatory framework for crypto in Pakistan. Observers will be keen to assess whether a Shariah-compliant framework can be developed that satisfies both religious and regulatory requirements. Market participants may watch for any statements from key figures such as Bilal bin Saqib and Mufti Muhammad Taqi Usmani that could suggest shifts in policy or interpretation. Additionally, developments regarding the Virtual Assets Act 2026 will be crucial in determining the future of crypto regulation in Pakistan.
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