Crypto in Pakistan: Between Regulation, Innovation, and Risk

Pakistan has entered a crucial moment in its crypto journey. Government leaders, senators, and the Pakistan Crypto Council are pushing bold initiatives, yet the country still lacks regulatory clarity. The question now is whether these steps are signs of real progress or just another round of mixed signals.

The Pakistan Crypto Council, led by the Finance Minister, is working on a regulatory framework to oversee digital assets in the country.
Bilal Bin Saqib, CEO of the Council, recently introduced Pakistan’s first government-led Strategic Bitcoin Reserve, aimed at storing Bitcoin in a national wallet for long-term use rather than speculation.

The government has also allocated 2,000 megawatts of surplus power to support Bitcoin mining and AI data centers. Meanwhile, digital currency pilots and blockchain integration for banks and forex companies are under discussion.

Despite these announcements, the legal position of crypto in Pakistan remains unclear.
While some departments are promoting digital asset initiatives, others, including the State Bank, still hesitate to recognize or regulate cryptocurrencies.

Terms like “regulate” are used frequently, but what regulation really means is still uncertain.
There are no clear rules on taxation, licensing, or AML/KYC requirements, leaving businesses and investors in a legal grey area.

Many government initiatives are still in pilot stages, and implementation has yet to match the promises being made publicly.

If Pakistan manages to create a clear and balanced regulatory framework, the benefits could be massive.
Surplus electricity can be used productively for mining and AI operations.
Foreign investment could flow in as global crypto and fintech companies find a regulated gateway into Pakistan.

With proper rules, crypto can strengthen financial infrastructure, attract global attention, and build trust through compliance and transparency.
A defined framework would also make it easier to track misuse and prevent illegal activities that have damaged the industry’s reputation.

The Real Risks

Without alignment between policies and actions, the current momentum could fade quickly.
Mixed signals from different authorities discourage serious investors and create confusion for the public.
Delays in regulation expose users and startups to enforcement risks without protection.
Infrastructure and energy usage must also be managed carefully to avoid misuse of resources.
Education and awareness are equally important so that users understand compliance, security, and the legal implications of their activities.

What to Watch Next

All eyes are now on the upcoming Virtual Assets Bill 2025, which is expected to define the legal status of cryptocurrencies and exchanges.
The State Bank’s stance will also be critical in determining whether licensed crypto platforms can operate officially in Pakistan.

Progress on the Strategic Bitcoin Reserve and energy allocation for mining projects will indicate how serious the government is about implementation.

Pakistan is at a turning point. The announcements made so far reflect ambition and vision, but without a solid legal foundation, these efforts may remain symbolic.

If the government acts decisively and transparently, crypto can become a major opportunity for economic growth, innovation, and inclusion.
If not, the country risks falling behind in one of the fastest-growing financial revolutions of our time.

Clarity, consistency, and proper execution will decide whether crypto becomes a boon or a risk for Pakistan.