Pakistan is finalizing a legal framework to recognize cryptocurrencies as legitimate financial instruments, marking a strategic shift to attract foreign capital and position itself as a blockchain leader in South Asia. The decision, spearheaded by Finance Ministry advisor Bilal Bin Saqib, aims to leverage the country’s tech-savvy youth population and streamline billions in informal crypto transactions already occurring nationwide.
The proposed regulations will establish oversight through a National Crypto Council and formalize licensing for exchanges, aligning with anti-money laundering standards while fostering innovation. Saqib emphasized Pakistan’s readiness to compete globally, citing its “low-cost, high-growth market” and 60% under-30 population primed for Web3 development. Chainalysis data ranks Pakistan ninth globally in crypto adoption, with 15–20 million users currently relying on peer-to-peer platforms.
The policy reversal follows years of regulatory hesitation, including a 2018 central bank advisory against crypto use. Officials now highlight remittance modernization and reduced banking fees as key benefits, particularly for Pakistan’s diaspora communities. The framework coincides with plans to pilot a central bank digital currency by late 2025 and integrate blockchain into land records and charitable systems.
Global trends influenced the pivot, with Saqib noting U.S. momentum under former President Donald Trump’s crypto advocacy. If implemented, Pakistan would become South Asia’s first nation to legalize crypto for international investment, contrasting with India’s restrictive approach. The move could unlock economic opportunities for startups and investors while addressing concerns about unregulated transactions.
Sources:
https://www.kryptomoney.com/pakistan-to-legalize-crypto-for-foreign-investment/
Pakistan Set to Legalize Bitcoin and Cryptocurrency with New Framework to Attract Foreign Investment
Pakistan Set to Legalize Cryptocurrency for Foreign Investment
https://www.cnbctv18.com/market/pakistan-moves-to-legalise-crypto-eyes-foreign-investment-amid-global-shift-19576571.htm
