Pakistan to Explore Legalization of Cryptocurrency

[Riaz Haq]

Islamabad is establishing the Pakistan Crypto Council (PCC) to look into regulating and legalizing the use of cryptocurrencies, according to media reports. Cryptocurrency refers to digital currencies that can be used to make purchases or investments using encryption algorithms. US President Donald Trump's endorsement of cryptocurrencies and creation of a "bitcoin reserve" has boosted investors’ confidence in it.  

The State Bank of Pakistan, the nation's central bank, has not authorized any individuals or organizations to carry out the sale, purchase, exchange, and investment of digital currencies, coins, and tokens. But the country has not officially banned the use of cryptocurrencies either, allowing about 20 million users to engage in crypto transactions. “We are coming on number three and four globally and there are many blockchain technology opportunities in Pakistan", said Bilal Saqib, the chair of the PCC.  

Top Countries Ranked By Global Crypto Adoption Index. Source: Chain...

Saqib told Bloomberg that regulatory sandboxes were being developed to create fast-track systems for crypto startups, enabling them to operate within a controlled and compliant environment.

There are media reports that Pakistan is working on lower electricity tariffs to attract crypto mining and blockchain-based data centers, aiming to utilize surplus power at marginal costs while fostering growth in the digital asset industry. Demand for grid electricity has been declining amid a solar power boom in the country. 

Cryptocurrencies are managed in a blockchain, which is a digital ledger that utilizes blocks of data and time stamps to create a digital transaction record.  Similar to a traditional digital spreadsheet, a blockchain contains a log of transactions. However, it uses a distributed structure in which data is stored on multiple machines, and all copies need to match before a transaction is considered valid. Blockchain in finance allows for faster and cheaper transfers and more accurate accounting records. Blockchain technology is seen as the future of fintech (financial technology). It can help streamline tens of billions of dollars worth of remittances from overseas Pakistanis.

Downplaying the fear of the abuse of cryptocurrencies for criminal activity, Saqib told the media: “Globally 0.24 percent cryptocurrency transactions are used for wrong things,” he said. “We want to use this technology for other things like real estate, agriculture and to unlock their liquidity.”

Talking about taxation, Saqib said the government intends to implement a “balanced pro-growth tax structure” to encourage foreign investment in the crypto sector. He believes cryptocurrency can significantly boost Pakistan’s fintech sector, positioning the country as a regional leader in digital finance. 

There is a lot of interest in enabling the use of crypto currencies around the world. It is not just developing nations like Pakistan. There are many countries actively developing regulations for cryptocurrencies, with some groupings like the EU implementing measures to protect users and combat criminal activities, while others, like the US, are slowly approaching regulation through existing market regulators like the SEC and CFTC. The jury is still out on the potential for success of such efforts. 

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[Riaz Haq]

Pakistan crypto chief announces Bitcoin strategic reserve

https://cointelegraph.com/news/pakistan-crypto-mininster-bitcoin-st...

Bilal Bin Saqib, head of Pakistan’s crypto council, announced on May 28 that the country is moving to establish a strategic Bitcoin reserve.

Speaking at the Bitcoin 2025 conference in Las Vegas, Nevada, Saqib said the government of Pakistan followed the United States’ lead in establishing a Bitcoin strategic reserve and is embracing pro-crypto regulatory policies. The government official told the audience:

"Today is a very historic day. Today, I announce the Pakistani government is setting up its own government-led Bitcoin Strategic Reserve, and we want to thank the United States of America again because we were inspired by them."
The announcement represents a significant departure from the government of Pakistan’s previous stance on cryptocurrencies, holding that crypto would never be legal in the country.

Pakistan’s shift reflects the broader trend of nation-states adopting pro-crypto policies following the regulatory shift in Washington, DC under the President Donald Trump administration.

Pakistan shifts stance toward cryptocurrencies
Pakistan government first explored the idea of a “National Crypto Council” in February 2025 to oversee the development of a comprehensive regulatory framework for cryptocurrencies and to attract foreign investment.

Several initiatives were proposed by the Council, including using runoff energy to mine BTC or data centers, and accumulating BTC for a national treasury.

In May 2025, the Council announced the allocation of 2,000 megawatts of excess energy to Bitcoin mining and high-performance computing data centers.

Binance co-founder Changpeng Zhao is one of the Council’s advisers. Appointed in April, the executive will advise on crypto regulations, blockchain infrastructure, and the adoption of digital assets.

Trump’s World Liberty Financial (WLFI), a decentralized finance protocol, signed a letter of intent on April 27 to help the country to tokenize real-world assets, build DeFi architecture, and experiment with crypto products.

More recently, in May 2025, Pakistan’s Ministry of Finance commissioned the establishment of an entirely new agency to oversee digital asset regulations in Pakistan. The Digital Asset Authority will oversee the regulation of crypto platforms and issue licenses to digital asset providers operating in the country.

[Riaz Haq]

Pakistan eyes expansion of digital wallet coverage


https://coingeek.com/pakistan-eyes-expansion-of-digital-wallet-cove...

A digital wallet project that the Pakistani government initiated two months ago has been a massive success, closing the gender gap and reaching citizens with disability, the country’s prime minister says.

PM Shehbaz Sharif commissioned the distribution of the Ramazan Relief Package in early April, partly via digital wallets for the first time. The Rs 20 billion ($71 million) initiative was overseen by the IT & Telecommunications Ministry and sought to make welfare and aid distribution “efficient, transparent, and respectful.” It aligned with the Digital Nation Pakistan Bill, which was passed by parliament in January and seeks to transition Pakistan into a digitally empowered nation.

Speaking at a recent event, Sharif lauded the success of digital wallets in boosting efficiency and transparency in fund transfers.

“Through digital wallets, 79% of the funds in the relief program were transferred seamlessly and transparently,” the PM stated.

Starting 2026, all welfare distribution will be done via digital means, he added.

According to local outlets, over 900,000 Pakistanis received aid through their newly created digital wallets and conducted nearly 2 million transactions. Significantly, a sizable portion of the users were women, which the PM says plays a role in reducing the gender gap in the program. Over 2,500 disabled people also used the digital wallets, further underscoring the initiative’s importance in promoting diversity and inclusion.

“This is more than a one-time relief package. It’s about fostering long-term digital habits that empower individuals and integrate them into the formal economy,” commented IT Minister Shaza Fatima Khawaja.
Pakistan is undergoing a digital payment transformation. In the last three months of 2024, retail digital payments grew 12%, according to data from the central bank. Pakistanis made over three billion transactions worth Rs154 trillion ($554 billion).

This growth is attracting global giants. In March, Google Wallet (NASDAQ: GOOGL) announced its entry into the Pakistani market, partnering with half a dozen local banks to allow cardholders to make payments via the app.

“The launch of Google Wallet is a solid testament to Pakistan’s rising digital payments adoption and will serve as a signal to other global payment solutions about the market’s potential,” commented Mutaher Khan, whose Data Darbar provides market intelligence in the country.

However, the market still faces significant challenges. One of these is the country’s massive undocumented economy, which the government reckons is as big as the formal economy. Operators in this cash-based market operate beyond the scope of the government and pay no taxes; this makes digital payments a direct threat as they would expose the market.