Pakistan Has Not Blocked Crypto After Religious Fatwa

Claim Check: Pakistan Did Not Announce a New Crypto Block

The claim that “Pakistan just blocked crypto on religious grounds” is misleading. The confirmed development is a fatwa, or Islamic legal opinion, not a government ban.

Dawn reported that the decree was issued by Darul Ifta at Jamia Darul Uloom Karachi and included Mufti Muhammad Taqi Usmani and five other scholars as signatories. The ruling said cryptocurrency is not considered “maal,” meaning wealth or property, under Shariah, and described crypto tokens such as USDT as account entries rather than recognized wealth.

The ruling also said purchases made through cryptocurrency were not valid under that interpretation. It cited a case involving an educational course bought with crypto and said such a purchase was not valid.

PVARA Says Digital Assets Need Separate Review

Pakistan Virtual Assets Regulatory Authority Chairman Bilal bin Saqib responded by saying he held a “constructive discussion” with Mufti Taqi Usmani on the Shariah status of digital assets. He said blockchain, stablecoins, tokenized real-world assets, and other digital assets should be reviewed through both technical and Shariah lenses, rather than as one single category.

Arab News also reported that Saqib called for a broader review of digital assets and said regulators, scholars, and industry experts should keep engaging on the issue. The team has not officially confirmed any reversal of the fatwa.

Pakistan’s Crypto Framework Is Still Operating

PVARA’s official website says Pakistan’s Virtual Assets Act, 2026 created the country’s first broad legal framework for virtual assets. It says PVARA is responsible for licensing, supervising, and regulating virtual assets and virtual asset service providers in Pakistan.

The regulator says virtual asset service providers, including exchanges, wallet operators, token issuers, custodians, and investment platforms, must obtain a formal license before offering services in Pakistan. PVARA is currently accepting no-objection certificate applications as the first step toward licensing.

The State Bank of Pakistan also issued BPRD Circular Letter No. 10 in April 2026. That circular replaced its 2018 prohibition circular and allowed regulated banks to open accounts for PVARA-licensed virtual asset service providers under strict conditions.

The SBP circular says banks must verify a VASP’s license with PVARA, keep client money accounts separate, follow anti-money laundering rules, and report suspicious transactions. It also says regulated entities cannot invest, trade, or hold virtual assets using their own funds or customer deposits.

What Was Actually Confirmed

The confirmed facts are narrow. A major religious seminary issued a fatwa against crypto-based purchases. Pakistan’s crypto regulator met with Mufti Taqi Usmani after that ruling. Pakistan’s formal virtual asset licensing framework remains active. No official source reviewed by The AirdropBuzz News Desk shows that Pakistan has newly blocked crypto nationwide on religious grounds.

Why This Matters

The fatwa may shape public trust, product design, and the way licensed crypto firms approach Shariah compliance in Pakistan. For users, the key point is that religious guidance and state regulation are moving on separate tracks for now. The legal framework still points toward regulated access, but products may face closer review from Islamic finance scholars before they reach the market.