Pakistan is preparing to introduce a legal framework for cryptocurrency use in foreign investment, reversing its earlier anti-crypto stance and positioning itself as a rising digital asset hub in South Asia.
Pakistan Shifts Gears on Crypto Policy
Pakistan is set to introduce a regulatory framework aimed at legalizing cryptocurrency for foreign investments, signaling a major policy shift from its previously restrictive approach. The development was confirmed by Bilal Bin Saqib, Chief Advisor to the Finance Minister, in an interview with Bloomberg, marking a pivotal moment for the country’s stance on digital assets.
This approach is in contrast to 2023, when the government announced its intent to ban crypto services and asserted it would not legalize crypto trading. Now, the focus has turned to leveraging digital assets as a tool for economic growth through overseas capital inflows.
A Strategic Move to Attract Global Capital
According to Saqib, the initiative is part of a broader plan to attract international investors by offering a clear, regulated environment for crypto-based investment.
He said,
“Pakistan is done sitting on the sidelines. We want to attract international investment because Pakistan is a low-cost high-growth market with 60% of the population under 30. We have a Web3 native workforce ready to build.”
He also mentioned Trump’s recent pro-crypto policies and how they will affect the crypto policies of countries globally.
The announcement follows the formation of a national crypto council, initiated by Prime Minister Shehbaz Sharif to promote blockchain adoption. The proposal is also being seen as a strategic lever to strengthen Pakistan’s financial position and attract much-needed foreign capital.
High-Level Talks and Growing Institutional Support
The policy shift follows high-level discussions between Pakistan’s Finance Minister Muhammad Aurangzeb and U.S. officials. Talks reportedly included plans to create a Bitcoin Strategic Reserve and develop a national crypto council. The move has received institutional backing from the Finance Ministry, the State Bank of Pakistan, and the Ministry of IT, paving the way for crypto exchanges, venture capital firms, and fintech startups to operate in a regulated environment.
Retail investors, previously constrained by legal ambiguity, are expected to benefit from greater market transparency and legal certainty.
A Region-Wide First in South Asia
If implemented, Pakistan will become the first country in South Asia to legalize cryptocurrency for investment purposes, placing it ahead of regional powers like India, where digital assets remain heavily scrutinized. The development could reposition Pakistan as a competitive blockchain destination alongside global crypto hubs such as Dubai, Singapore, and Hong Kong.
Despite the absence of formal regulations until now, Pakistan has been a significant player in the global crypto ecosystem. A recent Chainalysis report ranked the country ninth worldwide in crypto adoption, with an estimated 15–20 million citizens already involved in digital asset transactions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2025/03/pakistan-to-legalize-crypto-to-attract-global-capital