Saylani Reopens Debate Over Islamic Status of Digital Assets
Saylani Welfare International Trust has said cryptocurrency transactions can be permissible under Islamic law when they meet specific religious and legal conditions.
The organisation presented its position during an emergency meeting at its Karachi headquarters. The session was chaired by Saylani founder and chairman Maulana Muhammad Bashir Farooq Qadri.
Saylani’s Head Mufti, Mufti Wasim Akhtar Al-Madani, attended the meeting alongside blockchain specialists. Participants examined the technical structure of digital assets and the growing religious debate surrounding their use.
The meeting followed recent reports about a separate religious ruling that described cryptocurrency transactions as impermissible. Saylani maintained that digital currencies should not be rejected as one category without examining their ownership structure, purpose and practical use.
According to the organisation, its Dar-ul-Ifta completed extensive research into cryptocurrencies and issued a detailed 37-page religious ruling approximately 13 months ago.
The study was prepared in light of Islamic sources and the jurisprudential teachings of Imam Ahmad Raza Khan. It concluded that buying and selling digital assets could be permissible under defined conditions.
Digital Assets Treated as Recognised Ownership Rights
Mufti Wasim said Saylani’s ruling examines cryptocurrency as a digital right rather than conventional physical property.
He explained that cryptocurrency units remain under the exclusive ownership and control of their lawful holder. Other people cannot access, transfer or use those assets without the owner’s permission.
The ruling argues that this control creates an established and financially valuable right under Islamic jurisprudence. Compensation may therefore be accepted when the owner transfers or gives up that right.
A published summary of Mufti Wasim’s analysis considers three possible classifications. It rejects cryptocurrency as conventional physical wealth and as a benefit attached to a physical object. However, it considers crypto permissible when classified as a recognized right over specific digital units.
Under this interpretation, a cryptocurrency transaction is not simply the exchange of fictitious numbers. It represents the transfer of control over a digital asset that can be exclusively held, protected and transferred.
Mufti Wasim said such transactions may be permitted where national law does not prohibit them. He warned that trading would not remain permissible in a country where it exposes a person to legal punishment or other unlawful consequences.
The analysis also argues that price volatility alone does not automatically make a transaction impermissible. It distinguishes normal market price changes from excessive uncertainty that could invalidate a contract.
Illegal Use Does Not Make Every Transaction Impermissible
The Saylani meeting also examined concerns that cryptocurrencies can be used for fraud, money laundering and other illegal activity.
Participants argued that the possibility of misuse does not make every digital asset transaction prohibited. Many lawful products and technologies can also be used for criminal purposes.
The religious status of each transaction would instead depend on its purpose and structure. Any deal involving interest, gambling, fraud, deception, manipulation, money laundering or another prohibited activity would remain unacceptable.
The ruling therefore does not provide unconditional approval for every cryptocurrency, trading platform or investment scheme.
Highly speculative tokens, fraudulent projects and transactions designed mainly for gambling-like gains would still require separate examination.
The Pakistan Virtual Assets Regulatory Authority has also called for digital assets to be assessed individually. Its chairman, Bilal bin Saqib, has said asset-backed tokens, blockchain-based Islamic bonds and fully reserved stablecoins may have different characteristics from purely speculative cryptocurrencies.
Saylani Position Differs From Darul Uloom Karachi Ruling
Saylani’s position differs from a recent ruling issued by scholars at Jamia Darul Uloom Karachi.
That ruling said cryptocurrency did not currently qualify as recognized wealth under Islamic law. It described digital currencies as account entries and declared purchases made through them impermissible.
The contrasting rulings reflect a central disagreement over how cryptocurrencies should be classified.
Some scholars assess them as currencies or conventional property. Under this approach, the lack of physical existence, state backing or intrinsic value can create serious religious objections.
Saylani’s ruling instead classifies ownership of digital units as an established right. It argues that the ability to control, transfer and prevent unauthorized access gives that right financial value.
The debate also extends beyond Bitcoin and other widely traded cryptocurrencies. Asset-backed tokens, stablecoins, digital securities and blockchain-based financial instruments may carry different risks and ownership rights.
Government Urged to Consult All Major Schools of Thought
Maulana Bashir Farooq Qadri said Saylani had forwarded its detailed ruling to the Council of Islamic Ideology, the State Bank of Pakistan and the relevant federal ministry.
He urged the government to bring together scholars who support and oppose cryptocurrency transactions.
Saylani also called for representation from all major Islamic schools of thought. Legal experts, financial regulators and blockchain professionals should participate in the consultation process.
The Council of Islamic Ideology is Pakistan’s constitutional advisory body on whether proposed laws conform with the Quran and Sunnah. Its membership includes representatives from different Islamic schools of thought and relevant professional fields.
Maulana Bashir said a final national position should emerge only after a detailed review of religious principles, technology, ownership rights, financial risks and existing laws.
The Saylani analysis recommends clear legislation and a dedicated regulatory framework aligned with Islamic principles. It also states that digital asset trading becomes prohibited where national law has outlawed it.
Saylani said it would respect the government’s final policy after consultations with scholars, regulators and technical specialists.
Blockchain Education Could Support Pakistan’s Digital Economy
Maulana Bashir said Saylani had been teaching blockchain technology for approximately eight years.
He argued that Pakistan’s young technology professionals could contribute to digital finance, international freelancing and blockchain development.
However, he stressed that innovation must operate within national law and Islamic financial principles.
The debate comes as Pakistan develops regulations for virtual asset businesses, exchange licensing, stablecoins and the tokenisation of real-world assets. Regulators are also consulting religious scholars over the different categories of digital finance.
Saylani’s ruling adds another perspective to the national discussion. It does not declare every cryptocurrency activity permissible without conditions.
Instead, it argues that lawful ownership and transfer of recognised digital rights may be acceptable when a transaction avoids prohibited elements and complies with national law.
