Pakistan Pushes for Crypto Regulations to Attract Foreign Investment

Pakistan is taking steps to draft a regulatory framework for crypto trading, aiming to attract foreign investors and strengthen its economy. 

The South Asian nation is working to establish a legal and business-friendly environment for digital assets, recognizing their potential to drive economic growth. 

Bilal bin Saqib, CEO of the Pakistan Crypto Council and chief advisor on cryptocurrency and blockchain technology to the country’s Finance Minister emphasized the urgency of creating clear regulations.

Pakistan Needs Regulatory Clarity, Not Adoption

In an interview with Bloomberg TV, Bilal bin Saqib noted that Pakistan does not struggle with crypto adoption, as an estimated 15 million Pakistanis are already engaged in digital assets. 

Instead, the country faces regulatory uncertainty, which has hindered its ability to fully capitalize on crypto’s economic potential.

“Pakistan is done sitting on the sidelines,” Saqib stated.

“We want to attract international investment because Pakistan is a low-cost, high-growth market with 60% of the population under 30. We have a Web3-native workforce ready to build.”

According to Chainalysis, Pakistan ranks ninth in global crypto adoption as of September 2024, showcasing the widespread use of digital assets despite the absence of formal regulations.

State Bank of Pakistan’s Stance on Cryptocurrency

While Saqib advocates for a more lenient stance on digital assets, the State Bank of Pakistan (SBP) has maintained a cautious approach. 

In a 2022 public notice, the central bank said virtual currencies such as Bitcoin, Litecoin, and locally developed Pakcoin are neither recognized as legal tender nor authorized for issuance, sale, purchase, or exchange. 

Furthermore, the SBP directed financial institutions not to facilitate cryptocurrency transactions, citing concerns over price volatility, exchange hacks, and the risk of illicit activities.

However, Pakistan’s position on digital assets appears to be evolving in recent years. 

The government recently launched a national crypto council to regulate and integrate blockchain technology within its financial ecosystem. 

BREAKING: PAKISTAN'S CRYPTO COUNCIL CHIEF SAYS #BITCOIN PRICE IS "ONLY HEADING NORTH"

EVERY COUNTRY IN THE WORLD "MUST FOLLOW AMERICA" AND ADOPT #BITCOIN

"WE ARE AT RISK OF BEING LEFT BEHIND." 🚀 pic.twitter.com/nyh4CgQ3uo

— The Bitcoin Historian (@pete_rizzo_) March 20, 2025

Pakistan’s Crypto Adoption Strategy and Future Plans

Saqib has framed the country’s push toward crypto legalization as a matter of economic security. 

He pointed to U.S. President Donald Trump’s pro-crypto stance, arguing that Pakistan and other nations must follow suit. 

“Trump is making crypto a national priority, and every country, including Pakistan, will have to follow,” he said. 

By aligning with global trends, Pakistan hopes to position itself as a competitive digital assets and blockchain innovation hub.

To shape its regulatory framework, Pakistan is looking to the United Arab Emirates, which has embraced digital assets through clear regulations. 

Additionally, the country plans to collaborate with leading crypto markets on knowledge-sharing initiatives and sign memorandums of understanding (MOUs) to strengthen its digital finance sector.

Pakistan also aims to prevent excessive taxation, which Saqib argues stifles innovation. 

Instead, the government is focused on creating a stable and scalable regulatory environment that appeals to foreign investors. 

If successfully implemented, Pakistan’s crypto regulations could transform its fintech landscape, paving the way for broader digital asset adoption and investment.