Pakistan is advancing plans to legalize cryptocurrency as part of a broader strategy to attract global investment and position itself as a regional leader in blockchain technology. The government will introduce a regulatory framework to recognize digital assets as legal tender, supported by the establishment of a National Crypto Council. This council, comprising government officials, regulators, and industry experts, will advise on policies aimed at integrating cryptocurrencies into the formal economy while addressing risks like money laundering and fraud.
The decision marks a reversal from Pakistan’s historically cautious stance, driven by the rapid adoption of crypto among its population. An estimated 15–20 million Pakistanis already trade digital assets, ranking the country ninth globally in crypto adoption. Bilal Bin Saqib, CEO of the Pakistan Crypto Council and chief advisor to the finance minister, emphasized the need to harness this momentum, stating that the country’s tech-savvy youth—60% of whom are under 30—represent a “Web3-native workforce ready to build.” He highlighted ambitions to reduce reliance on traditional banking by leveraging blockchain for remittances and trade, which could lower transaction fees and enhance financial inclusion.
Global trends have also influenced Pakistan’s shift, with the U.S. under President Donald Trump pushing pro-crypto policies. Saqib noted that nations embracing digital assets risk being left behind, adding, “Pakistan is done sitting on the sidelines.” The move aligns with IMF recommendations to tax crypto gains, offering a potential revenue stream to address fiscal deficits and reduce dependence on international loans.
However, challenges remain, including concerns from the Financial Action Task Force about inadequate anti-money laundering safeguards. The State Bank of Pakistan plans to launch a central bank digital currency by late 2025 to modernize payments and ensure oversight. If successful, Pakistan could emerge as South Asia’s first nation to fully regulate cryptocurrencies, outpacing neighbors like India and Bhutan.
Sources:
https://www.ainvest.com/news/pakistan-moves-legalize-cryptocurrency-aims-blockchain-leadership-2503/
https://www.business-standard.com/world-news/pakistan-crypto-trading-legalise-imf-debt-loan-india-125032000390_1.html
https://www.indiatoday.in/business/story/why-is-pakistan-planning-to-legalise-cryptocurrency-3-key-reasons-2696773-2025-03-21
https://www.cnbctv18.com/market/pakistan-moves-to-legalise-crypto-eyes-foreign-investment-amid-global-shift-19576571.htm
https://www.blockhead.co/2025/03/20/pakistan-to-legalize-crypto-to-attract-2/
