Pakistan finds itself at a crossroads in its cryptocurrency landscape, maintaining a central bank ban on trading while simultaneously working towards a comprehensive regulatory framework. As the nation seeks to innovate through blockchain technology, it is also grappling with the challenges of balancing economic opportunity and consumer protection in a rapidly evolving digital asset space.
Regulatory Developments and New Institutions
Despite the State Bank of Pakistan’s (SBP) continued ban on cryptocurrency trading, the government has initiated a series of significant regulatory changes aimed at embracing digital assets. The establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) in July 2025 marked a pivotal moment, as it seeks to oversee and license virtual asset services under the new Virtual Assets Ordinance, 2025. This ordinance empowers PVARA to ensure compliance with financial standards and protect the economy from potential risks associated with unregulated crypto trading.
Furthermore, the Pakistan Crypto Council (PCC) was launched in March 2025, headed by Finance Minister Muhammad Aurangzeb, who emphasizes the importance of integrating digital finance within the national economy. This dual approach of institutional support and regulatory oversight reflects the government’s efforts to pave the way for a future where cryptocurrencies may play a more beneficial role in economic activities.
Key Figures Driving Digital Asset Policy
At the forefront of Pakistan’s evolving digital asset policy are influential figures like Finance Minister Muhammad Aurangzeb, who chairs both the PCC and PVARA. This high-level involvement matures the dialogue around crypto adoption in Pakistan, signaling a governmental recognition of the potential financial benefits that digital currencies could bring to the nation. Bilal Bin Saqib, the CEO of PCC, also serves as the Special Assistant to the Prime Minister on Blockchain and Crypto, advocating for a balanced regulatory environment that nurtures innovation while ensuring safety.
The recent appointment of Changpeng Zhao, the co-founder of Binance, as a strategic adviser to the PCC further underscores the country’s commitment to developing a robust cryptocurrency ecosystem. With Zhao’s extensive experience and insights, Pakistan is positioning itself as an emerging player in the global digital asset market.
Central Bank Digital Currency and Pilot Project
In an alignment with global trends towards digital currencies, the SBP is in the midst of developing a Central Bank Digital Currency (CBDC), with preparations for a pilot project expected to launch within the current fiscal year ending June 2026. Noor Ahmed, a spokesperson from the SBP, stated,
“We hope to complete the pilot within the current fiscal year. Tech partner and other details will be announced in due course.”
This initiative not only modernizes the financial system but also opens avenues for greater monetary control and consumer trust.
The anticipated benefits of a CBDC are substantial, especially in a country where about 40 million people are believed to engage in cryptocurrency trading. Transitioning to a digital currency could empower consumers and merchants alike, providing a safer and more efficient means of transaction that could ultimately enhance financial inclusion.
Economic Opportunities and Resource Allocation
Pakistan’s government is keenly aware of the economic potential presented by the intellectual and technological advancements surrounding blockchain and cryptocurrencies. Back in May 2025, the government allocated an impressive 2,000 megawatts of surplus electricity to support bitcoin mining and AI data centers. This strategic decision aims to harness excess energy while fostering an environment for technological innovation in the country.
Furthermore, analysts believe that with proper regulation, Pakistan could see an estimated $25 billion in virtual assets entering the tax net. The current investment and trading activities indicate a growing interest in the digital currency realm, suggesting that Pakistan’s crypto landscape could swell significantly, providing both revenue and job creation opportunities as regulatory frameworks solidify.
Ongoing Challenges and Regulatory Debates
Despite these forward-moving initiatives, the regulatory landscape surrounding cryptocurrencies in Pakistan remains fraught with challenges. Finance Secretary Imdadullah Bosal reaffirmed that the central bank’s ban on cryptocurrency trading is still in effect, stressing the need for robust regulations to protect investors and the financial system. This protective stance reflects deep-rooted concerns linked to money laundering and fraud that have historically accompanied unregulated markets.
Officials like MNA Mirza Ikhtiar Baig call for greater legal clarity, emphasizing the potential that youth-driven investments could bring if given a safe and legal framework. As debates continue, fears regarding energy allocation for crypto mining persist, especially amidst national load-shedding issues, raising questions about the sustainability and equity of resources in the face of burgeoning energy demands from different sectors.
Future Outlook and Legislative Steps
Looking ahead, the introduction of the “Virtual Assets Bill 2025” by Senator Dr. Afnan Ullah Khan aims to establish a thorough regulatory framework for digital assets. This bill seeks not just to regulate cryptocurrencies but also to introduce a Digital Rupee backed by the Pakistani Rupee (PKR), creating designated Virtual Asset Zones intended to foster innovation while ensuring compliance with anti-money laundering rules.
As this legislative process unfolds, PVARA’s ordinance, which was enacted for an initial 120 days, awaits parliamentary approval to ensure its permanence in the regulatory structure.
“A lot of these questions don’t have answers at the moment. Could you wait until we pass the regulation law [from parliament]?”
said Talal Ahmad from the minister’s office, underscoring the urgency and importance of approaching this rapidly evolving sector with legislative foresight.
The Road Ahead: A Pivotal Moment for Pakistan
As Pakistan navigates its complex relationship with cryptocurrencies, the evolving landscape suggests a significant transformation ahead. The groundwork laid by emerging regulations, influential leadership, and institutional innovations indicates a shift towards recognizing the potential of digital assets. Yet, this delicate balance between innovation and regulation remains a vital consideration for both the government and its citizens.
With increasing interest among the populace and global advancements in blockchain technology, Pakistan stands on the precipice of ushering in a new era in the financial sector. The focus now will be on how effectively the country manages to integrate these digital assets while safeguarding economic interests and building a sustainable regulatory framework for future generations.
