Pakistan is rapidly emerging as a key player in the global cryptocurrency landscape, driven by policy shifts in 2025 that establish regulatory bodies, integrate virtual assets into the formal economy, and unlock billions in economic opportunities while addressing financial inclusion.
Regulatory Framework and Key Bodies
The transformation of Pakistan’s crypto landscape began with the establishment of the Pakistan Crypto Council (PCC) on March 14, 2025. This government-backed initiative aims to develop a comprehensive regulatory framework and promote the adoption of blockchain technology and digital assets nationwide.
“The PCC envisions a future where Pakistan emerges as a hub for blockchain technology and crypto-based solutions, fostering economic growth and technological advancement in the region,”
Bilal Bin Saqib, the council’s CEO
Central to this regulatory overhaul is the enactment of the Virtual Assets Ordinance 2025, which led to the formation of the Pakistan Virtual Assets Regulatory Authority (PVARA). This independent body is tasked with licensing and supervising all virtual asset service providers (VASPs) in the country, ensuring compliance with national and international standards. In September 2025, the State Bank of Pakistan (SBP) announced its support for digital currencies, including plans to pilot a Central Bank Digital Currency (CBDC), further solidifying the regulatory landscape for cryptocurrencies in Pakistan.
Economic Impact and Market Potential
The recent policy changes open up significant economic possibilities, with trading volumes from Pakistani wallets reaching approximately $25 billion in 2023. Projections suggest that this figure could soar to $300 billion, nearly equivalent to the nation’s current GDP. The government’s focus on regulating cryptocurrencies is expected to channel informal capital flows into the formal economy, enhancing liquidity and attracting foreign investment, particularly in the form of rupee-backed stablecoins.
Digital assets have the potential to transform the remittance landscape, currently valued at over $31 billion annually. By leveraging cryptocurrencies, Pakistan aims to reduce costs and delays, making the remittance process more efficient for millions of families relying on funds from overseas. As a result, the inflow of digital currencies could bolster economic stability and financial inclusivity, providing vital support to a significant portion of the population.
Strategic Initiatives and Developments
The government’s strategy is multifaceted, involving collaboration with international firms like Soramitsu for the development of a CBDC and the allocation of 2,000 MW of surplus electricity for Bitcoin mining and AI data centers. These initiatives are designed to optimize the country’s energy resources effectively, potentially positioning Pakistan as a key player in the global cryptocurrency mining landscape.
Finance Minister Muhammad Aurangzeb reiterated the government’s commitment to attracting investments, stating, “Pakistan would issue a Panda bond by the end of 2025,” underscoring the venture’s importance. The government is also investing in blockchain education and Web3 innovation, indicating a robust strategy to cultivate local talent in emerging financial technologies and create a conducive environment for growth in the digital economy.
Challenges and Future Outlook
While the outlook appears promising, challenges remain regarding the parliamentary approval of the Virtual Assets Ordinance, which must occur within 120 days to become a permanent legal framework. Additionally, addressing concerns around cybersecurity and public education is crucial to preventing potential fraud and ensuring market integrity in the burgeoning crypto space.
Long-term goals involve not only a successful CBDC rollout but also addressing the financial inclusion crisis that affects over 100 million unbanked adults in Pakistan. By harnessing the power of cryptocurrencies, the government hopes to empower those excluded from traditional banking systems, fostering economic participation and social progress.
A New Financial Frontier
As Pakistan embarks on this essential journey towards cryptocurrency integration, the stakes are high, but so are the possibilities. With burgeoning trading markets, strategic governmental initiatives, and a visionary regulatory framework, the nation is poised to become a pioneering force in the regional and global fintech landscape. By navigating the complexities of this digital financial frontier thoughtfully and responsibly, Pakistan may not only enhance its economic stability but also redefine its position on the global stage in the years to come.
