Pakistan’s virtual assets regulator has urged the country’s leading Islamic seminary to differentiate between speculative cryptocurrencies and digital tokens backed by real-world assets, its chairman said on Wednesday.

Bilal bin Saqib, head of the Pakistan Virtual Assets Regulatory Authority (PVARA), told Reuters that he sought the clarification after the seminary ruled last month that crypto-based transactions were not permissible under Islamic law.

Crypto Push Faces Religious and Regulatory Challenges

The religious ruling, or fatwa, has cast doubt on the government’s rapid embrace of crypto in Pakistan, an Islamic nation of more than 240 million people that has long ranked among the world’s largest crypto markets by retail…