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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn a move highlighting the unique challenges facing digital assets in emerging markets with strong Islamic finance ties, Pakistan’s crypto regulators have initiated talks with scholar Mufti Taqi Usmani. This engagement follows a religious fatwa declaring the purchase of cryptocurrencies impermissible, creating a significant hurdle for the formalization of the sector. According to reports, the regulator is seeking to address these religious concerns to ensure any future legal framework aligns with Sharia principles.
Pakistan has consistently ranked high in global retail crypto adoption, yet the lack of regulatory and religious clarity remains a primary barrier for institutional entry. In contrast, jurisdictions like Malaysia and the UAE have successfully integrated Sharia-compliant frameworks for digital assets, per market data and regulatory precedents. Experts suggest that negative religious rulings in Pakistan could significantly dampen retail sentiment, as a large portion of the population prioritizes Sharia compliance in financial dealings.
Looking ahead, the outcome of these discussions will be critical for the trajectory of digital asset legislation in Islamabad. While local instrument pricing remains unavailable as of July 12, 2026, global macro catalysts remain in focus. Traders are monitoring upcoming central bank communications, including speeches by BoE Governor Bailey and the Fed's Bowman on July 7, 2026, which could influence broader risk appetite in the crypto space.