In a decisive move to clear the air around the legality of digital assets, the State Bank of Pakistan (SBP) has officially clarified that there is no ban on cryptocurrencies in Pakistan. This clarification comes amidst rising confusion following a recent briefing to the National Assembly’s Standing Committee on Finance, which mistakenly implied that crypto trading remains prohibited in the country.
Let’s unpack what the SBP actually said, what this means for crypto users in Pakistan, and what the future might hold for blockchain innovation in the region.
SBP Issues Clarification: No Legal Ban on Cryptocurrencies
In its press release, the SBP emphasized that cryptocurrencies and other virtual assets (VAs) have not been declared illegal. Instead, a 2018 advisory was issued to financial institutions as a risk mitigation step—not as a legal ban.
This advisory directed banks, microfinance institutions, development finance institutions (DFIs), and electronic money institutions (EMIs) to refrain from directly dealing in cryptocurrencies. However, this was meant to protect customers and institutions, not to declare crypto transactions unlawful.
“The advisory was issued solely to protect our regulated entities and their customers, not because VAs were declared illegal,” the SBP clarified.
Finance Committee Briefing Sparks Confusion
The need for clarification arose after a session of the National Assembly’s Standing Committee on Finance, where officials stated that cryptocurrency trading is currently banned. Secretary Finance Imdad Ullah Bosal supported this claim, noting that individuals involved in crypto dealings may still be investigated by the Federal Investigation Agency (FIA) and the Financial Monitoring Unit (FMU).
However, this raised eyebrows among crypto stakeholders and enthusiasts, given Pakistan’s increasing engagement with digital finance.
Coordinated Efforts for a Legal Crypto Framework
Despite the mixed signals, the **SBP reassured the public that it is working closely with the Finance Division and the newly formed Pakistan Crypto Council (PCC) to develop a legal and regulatory framework for cryptocurrencies. This development aims to provide a structured and transparent path forward for crypto innovation in Pakistan.
SBP Executive Director Sohail Jawad reiterated that the 2018 advisory remains in place for now, but the work to regulate digital assets responsibly is actively underway.
The SBP believes that a formal framework will bring clarity to the legal status of cryptocurrencies while safeguarding consumers and ensuring investor protection.
Crypto Council and Its Role in Pakistan’s Digital Future
The Pakistan Crypto Council (PCC) was established through an executive order by Prime Minister Shehbaz Sharif. While its creation sparked concern among some lawmakers, including Committee Chairperson Nafisa Shah, the Finance Ministry clarified that the PCC’s role is advisory.
Its goal is to propose legal and operational strategies for managing cryptocurrencies in Pakistan, rather than creating policy in isolation. This step marks a positive shift toward inclusion of tech and financial experts in the crypto conversation.
2000 MW Electricity Allocation: Government’s Crypto-Forward Initiative
One of the more controversial highlights of the parliamentary session was the government’s plan to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence (AI) data centres.
Committee member Mirza Ikhtiyar Baig criticized this move, questioning why such significant resources were being diverted to crypto mining rather than supporting traditional industries.
Still, this allocation underlines the federal government’s growing interest in digital transformation, and it could signal a new era of blockchain and AI integration in Pakistan’s economy.
Pakistan’s Rising Crypto Adoption and Economic Opportunity
Pakistan continues to make its mark on the global crypto stage. The country:
- Ranks among the top ten nations in cryptocurrency adoption
- Was previously placed third on the Global Crypto Adoption Index
- Has over 20 million active crypto users
- Records over $20 billion in digital asset transactions annually
- Receives around $35 billion in remittances every year
These numbers reflect the massive potential of blockchain-based financial solutions to streamline remittances, boost transparency, and enhance financial inclusion across the country.
What’s Next? Awaiting Regulatory Clarity
The Standing Committee on Finance is expected to summon the SBP, the Securities and Exchange Commission of Pakistan (SECP), and members of the Pakistan Crypto Council in the next meeting. The objective is to seek further clarity on the legal, economic, and procedural implications of digital asset adoption.
Until then, Pakistan’s crypto users and investors await definitive legislation—but one thing is clear: there is no outright ban on cryptocurrencies in Pakistan. The path ahead lies in smart regulation, investor education, and responsible innovation.