Pakistan Moves Toward Crypto Legalization with New Regulatory Framework
Pakistan, the world's fifth most populous nation, is making significant strides toward establishing a structured regulatory framework for cryptocurrency trading. This initiative is part of the government’s broader effort to attract foreign investment and bolster the country’s digital economy.
Shifting Stance on Crypto Regulation
The decision marks a major transformation in Pakistan’s approach to digital assets. Previously, the country maintained a cautious stance toward cryptocurrencies, citing concerns over financial security and regulatory compliance. However, with a rapidly growing user base and global trends favoring blockchain adoption, Pakistan is now positioning itself as a key player in the sector.
Rising Crypto Adoption in Pakistan
Pakistan’s move to develop crypto regulations aligns with the increasing interest in digital assets among its citizens. According to Bilal bin Saqib, CEO of the Pakistan Crypto Council (PCC), an estimated 15 to 20 million Pakistanis—approximately 8% of the population—are engaged in cryptocurrency transactions.
“Pakistan is done sitting on the sidelines! We aim to lead blockchain-powered finance,” Saqib stated in a Bloomberg TV interview. He highlighted that with 60% of the population under 30 and a strong Web3-native workforce, Pakistan has the potential to become a major hub for blockchain innovation.
The government's proactive stance comes shortly after Saqib’s appointment as Chief Advisor to the Finance Minister on digital asset management in March 2025. His role includes advising on artificial intelligence (AI) applications to enhance governance, decision-making, and technological advancements in the public sector.
Global and Regional Influence on Pakistan’s Crypto Policies
Pakistan’s regulatory shift is part of a broader trend in Asia, where several nations are embracing cryptocurrency. A significant influence has been the pro-crypto stance of U.S. President Donald Trump, whose policies are pushing global markets toward greater digital asset integration.
“Trump has made cryptocurrency a national priority, and Pakistan must align with this evolving financial landscape,” Saqib emphasized.
Formation of the Pakistan Crypto Council
To formalize its approach, the Pakistani government announced the establishment of the Pakistan Crypto Council (PCC) in March 2025. Led by Finance Minister Muhammad Aurangzeb, the PCC will work alongside key financial institutions, including the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan (SECP). The council’s mission is to draft clear regulatory guidelines, collaborate with international organizations, and ensure responsible innovation in the crypto space.
From Resistance to Regulation
Pakistan’s stance on cryptocurrency has fluctuated in recent years. In 2023, then-Finance Minister Aisha Ghaus Pasha declared that cryptocurrency would “never be legalized,” citing Financial Action Task Force (FATF) restrictions aimed at preventing financial crimes. To avoid being placed on the FATF gray list, Pakistan was required to tighten its financial oversight mechanisms.
However, the government has now adopted a more pragmatic approach. Instead of an outright ban, officials are working on a regulatory framework designed to integrate cryptocurrency into the formal economy while implementing strict anti-money laundering (AML) and counter-terrorism financing (CTF) measures. This new policy seeks to protect investors while ensuring that Pakistan remains compliant with international financial standards.
A New Era for Crypto in Pakistan
With the government now embracing cryptocurrency, Pakistan is poised to unlock new opportunities in the digital financial sector. By fostering a regulatory environment that encourages innovation while safeguarding financial security, the country is taking a bold step toward becoming a leader in blockchain-powered finance.