Pakistan’s virtual assets regulator, PVARA, is engaging with a leading Islamic seminary, Jamia Darul Uloom, following a recent fatwa declaring cryptocurrency purchases impermissible under Islamic law. PVARA Chairman Bilal bin Saqib has requested the seminary to differentiate between speculative cryptocurrencies and asset-backed digital tokens. The fatwa has created uncertainty around the government’s pro-cryptocurrency stance in a country with high retail crypto activity. Saqib argues that digital assets should be assessed individually, distinguishing between tokens representing tangible assets like sukuk or gold and purely speculative coins. He emphasizes that blockchain is a technology, not a financial asset in itself, and acknowledges the scholars’ concerns about speculative tokens. PVARA aims to develop a licensing framework for Shariah-compliant digital finance, working closely with religious scholars to achieve this goal and potentially position Pakistan as a global leader in this emerging field.