The Pakistani government has launched the Pakistan Crypto Council, fulfilling plans announced in late February. This move signals a shift towards regulating the country’s digital asset market, which has previously operated in a regulatory grey area. With over 20 million active Pakistani users engaging in digital assets, the council aims to provide clear guidelines for the adoption of digital assets, introduce transparency, and stabilize a sector known for volatility.
The council, spearheaded by Prime Minister Shehbaz Sharif, will be chaired by the Finance Minister. It includes key officials such as the State Bank governor, and federal secretaries for law and justice and information technology. The Chief Advisor to the Finance Minister on the Pakistan Crypto Council has been appointed as its Chief Executive, bringing experience in blockchain technology, investment strategy, and digital innovation. The council intends to incorporate more subject-matter specialists as it progresses.
Clear regulatory guidelines will be coupled with partnerships with international crypto and blockchain organizations to adopt best practices. This collaboration is designed to foster a crypto ecosystem based on responsible innovation and close partnerships with crucial industry players such as fintech startups, investors, and blockchain developers. A primary goal is to protect consumers and ensure financial security through strong legal and compliance frameworks. International collaboration will also focus on complying with anti-money laundering and counterterrorism financing standards.
Concerns about cryptocurrency have been raised. Critics argue that they enable illicit activities, while environmental worries center on the significant energy consumption involved in crypto mining. For instance, UN estimates suggest that the energy consumption of bitcoin alone in 2020-21 was higher than Pakistan’s. Countries like Pakistan are also exposed to the consequences of digital asset mining exacerbating global warming. Such challenges, combined with ongoing economic debates about the value of crypto-fueled speculation, have slowed crypto adoption worldwide.
Pakistan’s quick move towards regulated adoption has surprised many. Some link this shift to the increasing acceptance of digital assets following US President Donald Trump’s return to the White House. While most Pakistani experts consider the establishment of the Crypto Council a positive step, some are concerned about the influence of bureaucracy and its potential impact on the council’s operations. Given the mixed performance of regional regulators, these concerns are valid. Further, the government’s negative attitude toward digital content and periodic network slowdowns could affect cryptocurrency adoption. The council will need to work on these. Despite these challenges, observers see Pakistan’s effort to catch up with a new technology as an encouraging sign.
