PVARA seeks Mufti’s guidance on digital assets

Chairman of the Pakistan Virtual Asset Regulatory Authority (PVARA) Bilal Bin Saqib has said the authority is taking the country’s top

ISLAMABAD: Chairman of the Pakistan Virtual Asset Regulatory Authority (PVARA) Bilal Bin Saqib has said the authority is taking the country’s top religious leadership into confidence on matters related to digital and virtual assets.

Speaking to journalists in Islamabad, Bilal said a Shariah Advisory Board was being established to provide religious guidance on digital and virtual assets.

He said the board would guide the authorities on transactions involving digital and virtual assets. The aim is to ensure that the regulatory framework and related financial activities take into account Islamic principles.

Bilal said consultations were also being held with Mufti Muhammad Taqi Usmani, Pakistan’s prominent religious scholar, to seek guidance on transactions involving digital and virtual assets.

He said the authorities wanted to develop a system that could provide clarity to users and businesses operating in the emerging digital asset sector.

The PVARA chairman also highlighted the potential of digital remittances to reduce the cost of sending money to Pakistan.

He said the current cost of digital remittances stood at around 6.5 per cent. According to him, the use of digital channels could reduce the cost by around one percentage point.

Bilal said a reduction in remittance costs could result in savings of up to $410 million.

He said cheaper and more efficient digital remittance channels could benefit overseas Pakistanis and increase the amount of money reaching families in the country.

The PVARA chairman also claimed that the authority had demonstrated strong performance during its first six months. He described its progress as “extraordinary” and said the authority had made significant advances during the period.

Bilal further said Pakistan had the potential to accommodate around 40 million users of digital assets.

The comments come as Pakistan works to establish a regulatory framework for digital and virtual assets. The government has been seeking to bring the sector under a formal regulatory structure while addressing concerns related to financial security, consumer protection and compliance.

The establishment of a Shariah Advisory Board is also expected to provide greater clarity to people seeking to participate in digital asset transactions while ensuring that religious considerations are taken into account.

Bilal said the authorities would continue seeking expert and religious guidance as Pakistan develops its digital asset regulations.