- Pakistan is set to establish a regulatory framework for cryptocurrencies, fostering innovation.
- The country’s National Crypto Council aims to support crypto adoption and attract foreign investment.
- Pakistan plans to use excess electricity for sustainable Bitcoin mining, leveraging its natural resources.
Pakistan is set to transform its economy with the help of blockchain technology and cryptocurrencies. The country, led by Bilal Bin Saqib the head of the Pakistan Crypto Council (PCC), has decided to move beyond skepticism and usher the country into a proactive digital era. This comes after Saqib recently announced Pakistan will continue investing in crypto, focusing on sustainable Bitcoin mining and the attraction of foreign investments.
A New Era for Cryptocurrency in Pakistan
Pakistan was cautious for years as the global cryptocurrency boom picked up steam. In 2018, the State Bank of Pakistan (SBP) prohibited banks from facilitating crypto transactions but did not provide a clear regulatory framework. However, the crypto market flourished in the dark, estimated to have around 15 to 20 million users in 2021.
The government felt the need to formalize the sector based on this silent growth. To provide structure and clarity, the Pakistan Crypto Council (PCC) was established in March 2025. This marked a major shift with Bilal’s Bin Saqib’s leadership and the guidance of international experts such as Changpeng Zhao of Binance. Saqib stressed that Pakistan’s excess electricity should be employed towards sustainable Bitcoin mining, converting a national liability into a valuable asset.
Regulating the Crypto Sector
The urgency for clear regulations in Pakistan’s crypto sector has set in. The global digital economy is evolving and therefore, Pakistan has to create a comprehensive legal framework. The government’s intent is to build a robust infrastructure that fosters innovation but does not stifle progress.
The first step is to establish a central control authority. Licensing, compliance, and coordination of crypto-related activities would also be guaranteed by the implementation of this proposal. The government also intends to adopt anti-money laundering (AML) and counter-terrorism financing (CFT) measures in line with global standards such as those adopted by the Financial Action Task Force (FATF).
The definition of a cryptocurrency is a key challenge for Pakistan. This includes specifying the legal status of digital assets such as tokens, coins and blockchain applications. By licensing the virtual asset service providers (VASPs) like exchanges and custodians through clear guidelines, the government can ensure the protection of consumers.
Fostering Innovation While Protecting Consumers
In addition, Pakistan strives to balance the needs of innovation with the protection of consumers. Plans are on offer for the government to bring in a dual-tier system, similar to those in Singapore and Japan. Such a system would allow more relaxed regulations for smaller innovators and stricter standards for larger firms.
Another critical step is expanding regulatory sandboxes for controlled testing of blockchain technologies. These pilot programs will let the government learn about emerging crypto innovation without exposing the entire financial system to risk. The government of Pakistan also has plans for a national strategy on blockchain that will extend beyond cryptocurrencies. Blockchain could improve public sector efficiency, transparency, and trust.
Finally, Pakistan is focusing to create a legal environment for blockchain and digital assets. This will include clear tax guidelines and crypto mining incentives. By promoting responsible innovation, Pakistan wants to align itself with global crypto standards.
