Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib on Saturday met renowned Islamic scholar Mufti Taqi Usmani, with both sides holding a “constructive discussion” on digital assets and the ongoing debate over their Shariah status.

In a post on X, Saqib said the meeting focused on the need to assess emerging financial technologies while ensuring protection for citizens from potential risks.

“We are united on one fundamental objective: protecting Pakistanis from fraud, exploitation, and financial harm,” he said.

The crypto chief said blockchain, digital assets, stablecoins and tokenised real-world assets represented a wide range of technologies and applications that required detailed evaluation.

“As such, they merit careful technical assessment alongside rigorous Shariah examination, rather than being viewed through a single lens,” Saqib said.

He added that as the digital asset sector continued to evolve, he looked forward to greater engagement between religious scholars, regulators and industry experts.

Saqib said such collaboration would help ensure that Pakistan’s policy approach remained aligned with Islamic principles while also being informed by a comprehensive understanding of emerging technologies.

Pakistan ranks among the world's largest digital asset markets. According to Chainalysis' 2025 Global Crypto Adoption Index, Pakistan ranks third globally in grassroots crypto adoption, behind only India and the United States. Contributing factors include a young, mobile-first population, one of the world's largest freelance economies, over $38 billion in annual remittances, and the growing use of stablecoins as a hedge against inflation.

Pakistan did not adopt digital assets as a result of regulation; it adopted them first and is now developing regulations accordingly.

In February last year, Pakistan established the National Crypto Council (NCC) to develop a regulatory framework for digital assets and explore opportunities for attracting foreign investment in the cryptocurrency sector.

The council was formed as part of the government’s efforts to regulate and integrate blockchain technology and digital assets into the country’s financial system. Its establishment followed the appointment of Saqib as chief adviser to the finance minister on crypto affairs.

The NCC was tasked with facilitating the adoption of blockchain-based innovations and exploring ways to incorporate cryptocurrency and related technologies into Pakistan’s economic framework.

In April 2025, Binance co-founder Changpeng Zhao was appointed as an adviser to the council.

A few months later, Saqib drew attention after announcing the launch of Pakistan’s first government-backed Strategic Bitcoin Reserve.

Later, PVARA was established in July 2025 through a presidential ordinance and later granted legal status through the Virtual Assets Act 2026, which formally set up the authority and its regulatory framework.

Under the law, measures will be implemented to prevent money laundering and terrorism financing. The authority has been mandated to licence virtual asset service providers operating in or from Pakistan, regulate markets, supervise compliance with financial and security standards, and ensure alignment with international requirements.

In April, the State Bank of Pakistan allowed banks to open accounts for licensed virtual asset service ​providers, overriding a 2018 ban, as the country moved to integrate digital assets into the regulated financial system.

The ​move followed the enactment of the Virtual Assets Act, ​2026, and marked Pakistan’s first formal step toward bringing ⁠crypto-related businesses into the banking system under strict anti-money-laundering ​and compliance rules.

In May, Prime Minister Shehbaz Sharif directed the early and full operationalisation of an effective, internationally aligned regulatory system for the virtual assets sector to promote the digital economy and enhance investor confidence.