Pakistan Signals Major Shift Toward Formal Crypto Regulation

Pakistan eyes Bitcoin and digital assets as a new financial rail. Senior official signals a paradigm shift toward formal crypto market regulation.

Pakistan is now signaling a major shift toward formal crypto regulation. Digital assets are the backbone of a new financial rail, a senior official said. This structure is for the 240 million citizens of the country. The move is a sign of a significant shift from past policy. Therefore, the financial landscape of the country might be drastically changed.

New Law Establishes PVARA to Oversee Licensing

Bilal Bin Saqib, senior official, stressed this new direction on Tuesday. He was speaking at the Bitcoin MENA Conference in Abu Dhabi. Indeed, he argued, old economic models cannot work for Pakistan anymore. The nation urgently needs a “new engine,” he said. This new engine, he claims, must be a digital asset.

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The President of Pakistan signed a major Ordinance into law on July 8, 2025. This helps to give a necessary legal framework for the transition. It addresses the licensing, regulation and supervision of virtual assets. The law must gain the approval of parliament to make it permanent. Furthermore, this brings the system in line with international FATF standards.

This ordinance officially created the Pakistan Virtual Asset Regulatory Authority (PVARA). The independent PVARA will be monitoring all crypto-related activities. Its duties include the licensing of entities and consumer protection. Moreover, it implements Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) compliance rules. This is for a secure financial environment.

The State Bank of Pakistan (SBP) has also altered its regulatory perspective. The SBP agreed in principle to legalizing the digital currencies. It plans to take its previous advisory back. That earlier advisory had made all activity in the sphere of cryptocurrencies illegal. In addition, the SBP is also working on a state-backed “Digital Rupee” pilot program.

Economic Goals Drive Push for Digital Finance Hub

The government sees crypto assets as a possible national economic driver. The purpose is to create additional tax revenue. They also wish to simplify global remittances. Consequently, this strategic shift aims at positioning Pakistan as a regional digital finance hub. These economic goals are at the heart of the success of the new policy.

Mr. Saqib argued that Pakistan possessed the right scale to build a regulated ecosystem. He observed that 70% of the country’s population is below 30 years of age. Thus, the nation should become an active builder, not a “late adopter.” He pointed to the case of El Salvador as an example on a small scale for inspiration.

The senior official also made plain his simple, basic message. He said, “We don’t view Bitcoin, digital assets and blockchain as mere speculation, but as infrastructure.” He called it “the basis of a new financial rail for the global south.” Therefore, the concern is utility and not trading in itself.

The Pakistan Crypto Council (PCC) was created in March 2025. This government body is working on the final regulatory framework. Experts say Pakistanis have already invested between $20 billion and $30 billion. This investment was through non-regulated channels. The PCC has encouraged global companies to apply for official licenses.

This “paradigm shift” is a massive departure from the earlier anti-crypto stance of Pakistan. It is a proactive step on the part of the government by the current administration. The efforts bring the national financial system in line with global regulatory requirements. Ultimately, the implementation of such a strategy paves the way for new opportunities in terms of economic growth and broad digital inclusion. It shows the commitment to innovation.