By Key Points
- Pakistan Crypto Legalization Could Bring Billions in Investments
- 15–20 million Pakistanis actively use cryptocurrency.
- A new Pakistan Crypto Council will oversee blockchain integration.
- The government aims to make Pakistan a regional leader in Web3.
Pakistan, the world’s fifth most populous country, is taking a major step toward legalizing cryptocurrency. The government is drafting a regulatory framework to attract foreign investments, expand its digital economy, and integrate blockchain technology into the financial sector.
This shift is a sharp contrast to Pakistan’s previous anti-crypto stance. In 2023, the government insisted that cryptocurrency “would never be legalized” due to concerns over money laundering and financial crime risks. However, Pakistan now recognizes the economic benefits of digital assets, especially as countries like India, the UAE, and the US embrace Web3.
Bilal bin Saqib, CEO of the newly formed Pakistan Crypto Council (PCC), highlighted the country’s potential in an interview with Bloomberg TV. He estimated that 15 to 20 million Pakistanis—about 8% of the population—actively use cryptocurrency.
Spoke to Bloomberg this morning 👇🏻
Our message is clear – Pakistan is done sitting on the sidelines! We want Pakistan as the leader in blockchain-powered finance. Pakistan is a low-cost high-growth market with 60% of the population under 30. We have a web3 native workforce ready… pic.twitter.com/VwhGGh7QWg
— Bilal bin Saqib MBE (@Bilalbinsaqib) March 20, 2025
The Pakistan Crypto Council will work alongside the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan (SECP) to develop clear regulations for crypto adoption. Finance Minister Muhammad Aurangzeb is leading the initiative, signaling strong government support for the sector.
Why Pakistan Is Changing Its Crypto Policy
Pakistan’s regulatory shift is driven by several factors, including regional competition, remittance growth, and global crypto trends.
In recent years, the Financial Action Task Force (FATF) has pressured Pakistan to tighten anti-money laundering (AML) and counter-terrorism financing (CTF) rules. This initially led to strict restrictions on crypto, but the government now sees regulation as a better alternative than an outright ban.
CSAO: Countries by Cryptocurrency Value Received. Source: Chainalysis – Techtoken
Pakistan also ranks 9th globally in crypto adoption, according to the 2024 Global Adoption Index by Chainalysis. The country is fifth in the Central & Southern Asia and Oceania (CSAO) region, with over $30 billion in remittances processed through digital assets.
Honoured to lead as CEO of the Pakistan Crypto Council, working with our esteemed board and Chairman, the Finance Minister, at a defining moment for our nation.
With Pakistan ranking in the top 10 for global crypto adoption and an estimated 25M+ active users, alongside a $30B+… https://t.co/iFRlHXOtXU pic.twitter.com/laj0arzpN9
— Bilal bin Saqib MBE (@Bilalbinsaqib) March 15, 2025
Another factor influencing this decision is the global crypto market’s rapid evolution. Countries worldwide are integrating crypto into their economies, and Pakistan does not want to be left behind. Even MicroStrategy’s Bitcoin debt crisis has shown how deeply institutional adoption has impacted the market, with potential BTC selloffs creating major price shifts (read more).
Pakistan’s young, tech-savvy population also plays a crucial role. With 60% of the population under 30, there is a Web3-ready workforce eager to innovate. The government sees blockchain as a tool to enhance financial inclusion, making banking services accessible to millions.
The Challenges of Regulating Crypto in Pakistan
While Pakistan is moving toward crypto legalization, the process will not be without challenges. The biggest concerns include regulatory uncertainty, financial crime risks, and potential government crackdowns.
Several high-profile crypto scandals have also raised concerns about security. For example, the recent Pi Network bot activity allegations have sparked debates over fraud prevention and user safety in Web3 projects (read more). Similarly, the $7M Ross Token rug pull scandal highlighted the risks of unregulated crypto ventures and their impact on investor confidence (read more).
Another challenge is ensuring Pakistan’s crypto framework aligns with global standards. Countries like the United States are pushing for clearer regulations, and even Bitcoin’s price trajectory depends on these policy shifts. With Bitcoin’s potential breakout above $90K, the market is watching how governments worldwide regulate crypto to ensure stability and growth (read more).
Despite these hurdles, Pakistan’s push for crypto legalization signals a major transformation in its financial sector. If implemented correctly, these regulations could attract billions in foreign investments, position Pakistan as a regional Web3 hub, and create new economic opportunities for its citizens.
What's your reaction?
