Pakistan Plans Crypto Legalization to Boost Economy
Pakistan is moving towards legalizing cryptocurrency trading, according to Bilal bin Saqib, the newly appointed CEO of the Pakistan Crypto Council (PCC). In an interview, Saqib explained the country’s plan to establish a regulatory framework. The goal is to attract international investment and integrate blockchain technology into Pakistan’s economy.
For years, the State Bank of Pakistan voiced concerns about crypto, citing potential issues like fraud and financial instability. However, with Pakistan ranking high in crypto adoption globally, the demand for digital assets has become too significant to ignore, Saqib stated. Millions of Pakistanis are already active in the crypto space, a factor which could position Pakistan as a leader in the global blockchain and Web3 ecosystem.
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Why the Policy Shift?
Several factors influenced Pakistan’s decision to consider legalizing crypto. Approximately 15-20 million Pakistanis already trade digital assets, reflecting significant local adoption. Also, global trends, with countries like the US and UAE adopting crypto-friendly policies, have put pressure on Pakistan to remain competitive. The potential for economic growth, through attracting foreign investment is another key driver.
The influence of global politics is also relevant, particularly the support for crypto policies by figures like former US President Donald Trump, has prompted nations to reconsider their stance on digital assets. Pakistan has relied extensively on loans from the International Monetary Fund (IMF), including a recent $7 billion loan approved in September 2024. By bringing crypto trading under a regulated framework, the government aims to tax capital gains and trading activity, creating a new revenue stream. According to a report in The News, the IMF has suggested that the Pakistan Federal Board of Revenue should capitalize on any gains made through crypto to help with bailout debts.
Pakistan Crypto Council Established
Last week, Islamabad established the PCC, which will be responsible for developing crypto regulations and ensuring compliance with international standards. The council’s leadership includes Finance Minister Muhammad Aurangzeb and key figures from the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan (SECP), and government IT and law secretaries.
According to a release by the finance ministry on March 14, the council’s primary objectives include:
- Establishing clear regulatory guidelines for crypto trading.
- Ensuring investor protection and financial stability.
- Encouraging blockchain innovation across various sectors.
- Collaborating with international crypto organizations to adopt best practices.
India’s Stance on Cryptocurrency
Cryptocurrencies in India are currently unregulated. India has maintained that cryptocurrencies are not legal tender and has generally discouraged trading. Media reports suggest the central government may be reviewing its current stance, but no formal announcement has been made.
