The federal government and the State Bank of Pakistan (SBP) confirmed that cryptocurrency use remains illegal in Pakistan. Finance Secretary Imdad Ullah Bosal and SBP Executive Director Sohail Jawad stated this during a National Assembly Standing Committee meeting. They warned that violators could face investigations by the Financial Monitoring Unit (FMU) and the Federal Investigation Agency (FIA).
Contradictory Statements Raise Concerns
Despite the government’s stance, Special Assistant to the Prime Minister (SAPM) Bilal Bin Saqib promoted cryptocurrencies abroad. Pakistan Peoples Party (PPP) MNA Sharmila Faruqi highlighted these conflicting signals. She noted the lack of a legal framework despite Pakistan’s recent exit from the FATF grey list, urging regulatory clarity.
No Legal Framework for Cryptocurrencies
Bosal clarified that cryptocurrency regulation is still in early stages. He stressed the need for a comprehensive legal framework before any formal adoption. Currently, no such regulations exist, leaving cryptocurrency transactions in a legal grey area. The committee recommended inviting the Pakistan Crypto Council (PCC) for further discussions.
SBP’s 2018 Ban Still in Effect
Jawad reiterated that the SBP’s 2018 ban on cryptocurrency trading remains valid. Financial institutions must report crypto-related transactions to the FMU for investigation. He emphasized that only one country had adopted cryptocurrency as legal tender but later reversed its decision, highlighting regulatory challenges.
Government’s Bitcoin Mining Initiative Sparks Debate
Meanwhile, the Finance Ministry announced allocating 2,000 MW of surplus electricity for Bitcoin mining and AI data centers. SAPM Bilal Bin Saqib promoted this initiative abroad, calling it a step toward digital innovation. However, lawmakers questioned its legality, given the current ban on cryptocurrencies.
Proposed Pakistan Digital Assets Authority (PDAA)
The government plans to establish the PDAA to regulate digital assets. The authority aims to protect investors and formalize digital finance frameworks. However, committee members expressed concerns over the lack of legal backing for such initiatives, urging proper legislation before implementation.
Cryptocurrency Use Persists Despite Ban
PTI MNA Usama Mela pointed out that Pakistanis still use cryptocurrencies for overseas transactions, such as importing used cars from Japan. He questioned whether the government itself would engage in Bitcoin mining, given the newly allocated electricity.
Public Misled by Government’s Mixed Signals
PPP’s Mirza Ikhtiar Baig warned that government-endorsed crypto promotions have misled the public. Many invested heavily, driving up cryptocurrency prices. He called for clear policies to prevent financial risks and protect citizens from speculative losses.
SAPM Promotes Pakistan’s Digital Vision Abroad
Bilal Bin Saqib addressed global audiences, including US leaders, at Bitcoin Vegas 2025. He announced Pakistan’s Strategic Bitcoin Reserve and a national Bitcoin wallet, positioning Pakistan as a digital innovation hub. However, lawmakers questioned the legality of these initiatives without proper regulations.
Conclusion: Urgent Need for Regulatory Clarity
The National Assembly committee highlighted contradictions in the government’s cryptocurrency stance. While officials enforce a ban, other initiatives promote digital assets. Lawmakers demanded a clear legal framework to avoid financial instability and ensure investor protection. Until then, cryptocurrency remains illegal in Pakistan.
