Summary：**Pakistan Crypto Chief Urges Dialogue After Scholar Bans Crypto Payments** *Pakistan’s virtual‑ass

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**Pakistan Crypto Chief Urges Dialogue After Scholar Bans Crypto Payments**

*Pakistan’s virtual‑assets regulator called for continued dialogue on the treatment of digital assets after meeting an Islamic scholar who backed a ruling against purchases made with crypto.*

### Introduction
The head of Pakistan’s Securities and Exchange Commission’s Virtual Assets Wing sat down with a prominent Islamic jurist this week to discuss the growing tension between emerging blockchain technologies and traditional Sharia interpretations. The meeting followed a fatwa that declared the use of cryptocurrencies for everyday transactions impermissible, sparking concern among fintech startups and investors who see digital assets as a pathway to financial inclusion.

### Key Developments
During the dialogue, the regulator emphasized that the commission’s mandate is to foster innovation while safeguarding consumers, not to enforce religious edicts. He noted that the virtual‑assets framework, introduced in 2022, already includes anti‑money‑laundering safeguards and consumer‑protection measures that align with broader Islamic finance principles. The scholar, meanwhile, reiterated his stance that speculative trading and unverified tokens conflict with Sharia’s prohibition on gharar (excessive uncertainty) and riba (interest), but acknowledged that certain asset‑backed tokens could be permissible if they meet strict criteria.

### Industry Analysis
Analysts say the exchange highlights a pivotal moment for Pakistan’s crypto ecosystem. Local exchanges have reported a 12% dip in weekly trading volumes since the fatwa circulated, while peer‑to‑peer platforms saw a modest rise as users sought alternative channels. Legal experts caution that a fragmented regulatory response could push activity underground, undermining the commission’s oversight goals. Conversely, a clear Sharia‑compliant guideline could unlock institutional interest from Islamic banks and sukuk issuers eager to explore tokenized assets