Pakistan is taking a significant step towards legalising cryptocurrency trading as part of a broader strategy to attract foreign investment and integrate blockchain technology into its economy. Bilal bin Saqib, the newly appointed CEO of the Pakistan Crypto Council (PCC), confirmed the development in an interview with Bloomberg TV on Thursday.
For years, the State Bank of Pakistan (SBP) has expressed concerns over cryptocurrencies, citing risks related to fraud, money laundering, and financial instability. However, the country’s high crypto adoption rate—currently ranked ninth globally—has made it increasingly difficult to ignore the sector’s potential, Saqib noted.
With millions of Pakistani users already engaged in digital asset trading, the move could position Pakistan as a significant player in the global blockchain and Web3 landscape, he added.
Why Pakistan is Moving Towards Crypto Legalisation
Multiple factors have influenced Pakistan’s decision to pivot towards cryptocurrency regulation. An estimated 15-20 million Pakistanis are actively trading digital assets, indicating a strong local demand. Additionally, as major global economies such as the United States and the United Arab Emirates embrace crypto-friendly policies, Pakistan faces mounting pressure to remain competitive.
Economic considerations also play a critical role. A well-regulated cryptocurrency sector could attract substantial foreign investment and drive technological innovation within the country. By formalising the industry, the government could impose taxes on capital gains and trading activities, creating a new revenue stream that could help reduce fiscal deficits and lessen reliance on external borrowing.
Pakistan’s economic woes have deepened in recent years, with the nation securing more than 20 loans from the International Monetary Fund (IMF) since 1958. The most recent bailout, approved in September 2024 for $7 billion, positioned Pakistan as the fifth-largest debtor to the IMF. In a bid to meet its fiscal commitments, the IMF has reportedly urged Pakistan’s Federal Board of Revenue (FBR) to bring crypto gains under the tax net, as per a report in The News.
Pakistan Crypto Council Takes Charge
In a major institutional shift, Islamabad recently established the Pakistan Crypto Council (PCC) to spearhead regulatory efforts and ensure compliance with international standards. Led by Finance Minister Muhammad Aurangzeb, the council includes key figures such as the governor of the SBP, the chairman of the Securities and Exchange Commission of Pakistan (SECP), as well as federal IT and law secretaries.
According to a statement released by the finance ministry on March 14, the council’s key objectives include:
Developing a comprehensive regulatory framework for cryptocurrency trading.
Ensuring investor protection and financial stability.
Promoting blockchain innovation across various sectors.
Collaborating with international crypto organisations to adopt global best practices.
Regional Perspectives on Crypto Regulation
While Pakistan moves towards a regulated crypto market, its neighbour India has maintained a more cautious stance. Cryptocurrencies remain unregulated in India, and the government has consistently discouraged trading. In 2021, authorities proposed an outright ban on private digital currencies. However, recent media reports suggest that New Delhi may be re-evaluating its position in light of growing global acceptance of digital assets.
As Pakistan navigates its financial challenges, the decision to embrace cryptocurrency could mark a turning point. By regulating and taxing crypto trading, the country hopes to not only attract investment but also create a sustainable economic pathway for the future.
