Key Takeaways
- PCC includes key financial and regulatory figures, such as the governor of the State Bank of Pakistan, the chairman of the Securities and Exchange Commission of Pakistan (SECP), and federal IT and law secretaries.
- By formalizing digital asset trading, the government aims to generate tax revenue from capital gains
Pakistan is laying the groundwork to legalize crypto trading, signaling a major policy shift as the government aims to attract foreign investment and integrate blockchain tech into its economy. This move comes amid growing global acceptance of digital assets and increasing domestic adoption, making regulation a necessary step for the country.
Bilal Bin Saqib, the newly appointed CEO of the Pakistan Crypto Council (PCC), confirmed the government’s intentions in an interview with Bloomberg. “Pakistan is done sitting on the sidelines,” he stated. “We want to attract international investment because Pakistan is a low-cost, high-growth market with 60% of the population under 30.”
The country’s stance on crypto has been cautious for years, with the central bank warning about risks such as fraud, money laundering, and financial instability. However, Pakistan now ranks ninth globally in crypto adoption, with an estimated 15 to 20 million citizens actively trading digital assets. Given this widespread usage, policymakers recognize that a regulatory framework is essential to bring clarity and stability to the sector.
To oversee the transition, Finance Minister Muhammad Aurangzeb recently established the Pakistan Crypto Council. The PCC includes key financial and regulatory figures, such as the governor of the State Bank of Pakistan, the chairman of the Securities and Exchange Commission of Pakistan (SECP), and federal IT and law secretaries. Their role will be to craft policies that align with international best practices while addressing concerns around financial security and compliance.
A key motivation behind this shift is the potential economic boost that a regulated crypto market could provide. By formalizing digital asset trading, the government aims to generate tax revenue from capital gains and trading activity. This could help Pakistan reduce its fiscal deficit and decrease its dependence on external borrowing.
The country has historically relied on financial aid, taking over 20 loans from the International Monetary Fund (IMF) since 1958. Its most recent loan—a $7 billion package approved in September 2024—further underscored the need for sustainable economic strategies. Reports indicate that the IMF has recommended incorporating crypto gains into Pakistan’s tax net to help manage bailout debts.
Beyond financial incentives, geopolitical factors have also played a role in Pakistan’s decision. Many countries, including the United States and the UAE, have embraced crypto-friendly policies, putting pressure on nations like Pakistan to stay competitive. Saqib highlighted this shift, stating, “Trump is making crypto a national priority, and every country, including Pakistan, will have to follow suit.” The growing acceptance of digital assets on the global stage has encouraged governments to rethink their regulatory approaches.
Despite past skepticism, Pakistan’s leadership now aims to mitigate risks through clear legislation. Establishing structured guidelines could promote innovation while preventing misuse of decentralized networks. By taking early steps toward regulated crypto trading, the country hopes to position itself as a regional hub for blockchain technology and digital finance.
While Pakistan moves toward regulation, neighboring India has maintained a cautious stance on crypto. Though India has not recognized crypto as legal tender, reports suggest that its government may be reassessing its policies in response to global trends.
