Pakistan is moving to establish a dedicated Shariah Advisory Board for cryptocurrencies and other digital assets.
The proposed board will provide religious and regulatory guidance on transactions involving virtual assets.
Pakistan Virtual Asset Regulatory Authority Chairman Bilal Bin Saqib announced the development while speaking to journalists in Islamabad.
He said prominent Islamic scholar Mufti Taqi Usmani had been consulted about digital assets and Pakistan’s emerging regulatory framework.
The initiative comes as authorities work to develop clearer rules for cryptocurrency activity in the country.
The proposed board will examine whether digital asset transactions comply with Shariah principles and how such transactions should be structured.
Mufti Taqi Usmani Consulted on Digital Asset Regulation
Bilal Bin Saqib said he had taken Mufti Taqi Usmani into confidence regarding cryptocurrencies and the future regulation of virtual assets.
Discussions focused on the religious aspects of digital financial transactions.
Authorities are seeking guidance on how emerging technologies can operate within an Islamic financial framework.
Cryptocurrencies have raised complex questions for Islamic finance scholars.
These include issues related to speculation, ownership, asset backing, uncertainty and the structure of digital transactions.
The proposed advisory board is expected to examine such matters before providing recommendations to regulators.
Its guidance could help authorities establish clearer standards for Shariah-compliant cryptocurrency and virtual asset activity.
Shariah Board to Guide Crypto Transactions
The PVARA chairman said the new board would provide guidance on transactions involving digital and virtual assets.
Regulators are expected to refer relevant matters to the board when questions arise about Shariah compliance.
The board could assess different types of cryptocurrency transactions, digital assets and emerging financial products.
Its recommendations are expected to help determine whether certain transactions are permissible under Islamic financial principles.
The initiative could also provide greater clarity for investors who want to participate in digital asset markets while following Shariah requirements.
However, the exact structure, membership and operational powers of the board have not yet been announced.
Further details are expected as Pakistan develops its wider virtual asset regulatory framework.
Pakistan Expands Oversight of Growing Crypto Market
The move comes as Pakistan increases efforts to regulate its rapidly expanding cryptocurrency sector.
A large number of Pakistanis are already involved in digital asset trading and investment.
The government is therefore working toward a formal framework that can provide greater regulatory oversight.
The Pakistan Virtual Asset Regulatory Authority is expected to play a central role in developing and supervising the new system.
Adding a Shariah Advisory Board could introduce an additional layer of oversight focused specifically on Islamic financial principles.
The initiative could also become important for the development of Shariah-compliant digital financial products in Pakistan.
Authorities have not yet announced when the board will formally begin operations.
Details regarding its members, decision-making process and relationship with financial regulators are also expected at a later stage.
The proposed framework signals Pakistan’s attempt to combine cryptocurrency regulation with Islamic finance considerations as the digital asset market continues to expand.
