- Pakistan has officially legalized cryptocurrencies and will introduce a framework soon.
- US officials and Pakistan Finance Minister Muhammad Aurangzeb engaged in conversations.
- The authorities are also contemplating the approval of a Bitcoin Strategic Reserve.
Pakistan has officially flipped the switch on digital assets, marking a major turning point in the nation’s approach to blockchain-based tokens. After years of regulatory uncertainty and a hesitant stance, the government is now establishing a clear legal framework for cryptocurrencies.
For crypto market players, this move is expected to ignite a vibrant ecosystem for investors, traders, and businesses. The hope is that it will also attract foreign investment, giving a boost to Pakistan’s economy. In fact, authorities are aiming high, wanting Pakistan to become the “crypto capital of South Asia.”
Pakistan’s South Asia Ambitions
The decision to legalize cryptocurrency comes after high-level discussions between Pakistan’s Finance Minister Muhammad Aurangzeb and United States officials regarding the potential benefits of a Bitcoin Strategic Reserve and the creation of a crypto council.
The initiative is seen as a ‘trump card’ to strengthen Pakistan’s financial standing by positioning the country as a welcoming destination for global crypto investors.
According to Bloomberg, Pakistan is actively working on launching a legal framework for digital assets. Bilal bin Saqib, CEO of the Pakistan Crypto Council (PCC), has emphasized that this decision marks a turning point in the country’s digital finance journey.
With a significant 60% of Pakistan’s population under the age of 30, the nation presents a unique opportunity as a rapidly expanding, cost-effective market for Web3 development.
Related: Pakistan on Track to Legalize Cryptocurrency
Pakistan Crypto Council’s Role
Pakistan officially launched its National Crypto Council in late February 2025. This council’s purpose is to regulate and foster the growth of blockchain technology while ensuring the crypto sector develops responsibly.
The Pakistan Crypto Council will operate under the leadership of Finance Minister Muhammad Aurangzeb, with key board members including the Governor of the State Bank of Pakistan (SBP), the Chairman of the Securities and Exchange Commission of Pakistan (SECP), the Federal Law Secretary, and the Federal IT Secretary.
A statement from the Finance Division on March 14, 2025, highlighted the council’s formation as a crucial step in embracing digital finance and establishing Pakistan as a key player in the global blockchain industry.
How Has Pakistan’s Central Bank Been Involved
The State Bank of Pakistan (SBP) has also played a crucial role in shaping the country’s digital finance policies. On November 4, 2024, the SBP announced a set of policy proposals aimed at legalizing digital assets, including cryptocurrencies, as legal tender.
Related: This Indian Company Just Went All-In on Bitcoin: Here’s Why
The Monetary Policy Committee (MPC), led by SBP Governor Jameel Ahmad, proposed amendments that would allow state banks to issue digital currency, potentially setting the stage for a central bank digital currency (CBDC) or a government-backed digital rupee.
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