A Pakistan crypto-legal ruling sparks controversy over digital asset regulatory frameworks

Golden Finance reported that on July 13, according to The Block, after a meeting with Bilal bin Saqib, chair of Pakistan’s virtual asset regulator, and the Islamic scholar Mufti Taqi Usmani, Bilal bin Saqib said that stablecoins, tokenized RWA, and other blockchain products should each undergo technical and Islamic law assessments, and should not be treated as the same category. Previously, Usmani and other scholars issued a fatwa ruling that USDT and other cryptocurrencies are not recognized as wealth under Islamic law, and that transactions using them to purchase physical goods or digital services are invalid.

Previously, Pakistan passed the “Virtual Assets Act” in March this year, requiring exchanges, custodians, and token issuers to ensure their businesses comply with Sharia guidance from the Council of Islamic Financial Scholars. The country is also moving forward with a sovereign stablecoin, the tokenization of national assets, and licensing for crypto trading platforms.