Woofun AI reports that a significant regulatory-religious tension has emerged in Pakistan, where PVARA chairman Bilal bin Saqib is seeking continued dialogue with prominent scholar Mufti Taqi Usmani after the latter issued a ruling against cryptocurrency payments. This interaction underscores the complex challenge of aligning modern financial infrastructure with traditional Islamic legal frameworks.

The discussion, held on Saturday, focused on distinguishing between various technological applications rather than treating them as a monolithic entity. Saqib emphasized the need for a careful technical assessment alongside rigorous Shariah examination to address specific risks such as fraud, exploitation, and financial harm. He argued that blockchain technology, digital assets, stablecoins, and tokenized real-world assets (RWAs) require nuanced evaluation rather than a single-lens approach.

Per Woofun AI, the religious opposition carries substantial weight given the demographic context of the nation. The 2023 census recorded a population of 231.7 million, with 96.35% identifying as Muslim. On Friday, Mufti Taqi Usmani and five other scholars from Jamia Darul Uloom Karachi issued an Islamic legal ruling, stating that purchases made with crypto, including stablecoins like USDT, are not permitted because digital tokens do not qualify as recognized property or wealth under their interpretation of Islamic law.

This religious stance contrasts sharply with the rapid legislative milestones achieved by the Pakistani government. On April 15, the State Bank of Pakistan allowed banks to open accounts for virtual asset service providers (VASPs) licensed by the PVARA, effectively ending an eight-year restriction on regulated institutions dealing with crypto. This operational shift followed the passage of the Virtual Assets Act 2026 in March, which established PVARA as the statutory body responsible for licensing and oversight of virtual asset activities.

The sector is now navigating a critical transition from years of prohibition toward a licensed virtual-asset sector. The path forward depends on whether regulators can bridge the gap between statutory oversight and religious acceptance, ensuring that the new licensing framework gains both legal legitimacy and public trust.