Pakistan is accelerating its efforts to integrate cryptocurrencies and crypto adoption into its financial system, but the move has raised significant concerns due to the lack of a clear regulatory framework. The government has established the Pakistan Crypto Council (PCC), led by Bilal Bin Saqib, to promote blockchain technology and digital assets. The council aims to position Pakistan as a hub for digital innovation, leveraging its large youth population and growing freelance economy, with over 40 million crypto wallets reportedly active in the country.
Efforts for Crypto Adoption
A key initiative includes allocating 2,000 megawatts of surplus electricity at concessional rates to support bitcoin mining and attract tech firms. The government also plans to create a national bitcoin reserve, holding digital assets already in state custody. However, these steps have sparked debate, as cryptocurrencies remain illegal to trade in Pakistan, and the State Bank of Pakistan does not recognize them as legal tender. Reports indicate that individuals engaging in crypto transactions face legal action, creating a contradiction between government ambitions and existing laws.
Skeptics highlight the risks of investing public resources in a volatile asset class, especially given Pakistan’s recent exit from the Financial Action Task Force (FATF) grey list in 2022. The absence of robust anti-money laundering (AML) and counter-terrorist financing (CFT) measures raises fears of potential misuse, with groups like the Tehrik-i-Taliban Pakistan reportedly using crypto platforms for fundraising. Critics argue that without a comprehensive regulatory framework, such as mandatory audits and governance standards, Pakistan risks financial instability and international scrutiny.
What’s Next
Despite these concerns, proponents see potential in cryptocurrencies to boost financial inclusion and attract foreign investment. Pakistan ranks among the top 10 globally for crypto adoption, with an estimated $25 billion in digital assets held by 20 million citizens. The government’s collaboration with international players, including a partnership with World Liberty Financial, signals its intent to align with global trends. However, the success of these efforts hinges on balancing innovation with regulatory clarity to protect investors and ensure economic stability.
Published in SouthAsianDesk, July 30th, 2025
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