Pakistan Initiates Comprehensive Regulatory Framework for Digital Assets
In a significant step towards regulating the burgeoning cryptocurrency sector, Pakistan has officially begun drafting a detailed regulatory framework for digital and virtual assets. This initiative marks the government’s intention to formally oversee the rapidly growing cryptocurrency landscape within the country. The announcement was made during a high-profile meeting of the Pakistan Crypto Council (PCC) in Islamabad, which was chaired by Finance Minister Muhammad Aurangzeb, as reported by The News. The meeting brought together key stakeholders for vital discussions on the subject.
Formation of Technical Committee to Review Draft Laws
Among the participants was Bilal Bin Saqib, Minister of State and Special Assistant to the Prime Minister on Blockchain and Crypto, who attended the meeting virtually and is also the CEO of the PCC. Additionally, the governor of the State Bank of Pakistan (SBP) joined the meeting remotely, while the chairperson of the Securities and Exchange Commission of Pakistan (SECP) and secretaries from relevant ministries attended in person. The primary focus of the discussions was to establish a regulatory framework that encourages security, transparency, and innovation within the sector.
Framework Aims to Protect Investors and Promote Financial Inclusion
To facilitate this regulatory process, a technical committee has been established, consisting of representatives from the SBP, SECP, Law Division, and IT and Telecom Division. This committee will be tasked with reviewing draft laws and suggesting a comprehensive governance structure. The proposed framework is anticipated to address various critical elements such as licensing, compliance, and innovation in the digital asset space, all aimed at safeguarding investors while enhancing financial inclusion.
Growing Global Trend Towards Digital Asset Regulation
This initiative comes at a time when there is a rising global momentum for regulating digital assets. It follows recent advancements in Pakistan, including the introduction of the nation’s first government-operated Strategic Bitcoin Reserve and the creation of a national Bitcoin wallet. Although cryptocurrencies are not officially regulated in Pakistan at present, this new move signifies a clear intention to formalize the sector and incorporate it into the national financial framework.
Call for a Balanced Regulatory Approach
The council emphasized the importance of adopting a balanced regulatory strategy—one that safeguards investors, fosters transparency, and encourages innovation, all while maintaining financial stability. Minister Aurangzeb reinforced the government’s dedication to modernizing the financial sector, asserting that any future regulatory framework must enhance inclusion, transparency, and economic resilience.
Clarification on Cryptocurrency Status in Pakistan
The meeting followed a significant announcement from last week, where Saqib revealed Pakistan’s inaugural government-led strategic Bitcoin reserve at the Bitcoin Vegas 2025 conference in the U.S. On the previous Friday, the SBP clarified that cryptocurrencies are not outright banned, but they operate outside the current legal framework. The central bank advised regulated entities—including banks, development finance institutions, microfinance banks, electronic money institutions, and payment service providers—not to engage with virtual assets due to the lack of legal protections, clarifying that this was not due to any illegality of such assets.
Concerns About Legitimacy and Consultation Processes
The journey toward virtual asset regulation in Pakistan remains fraught with uncertainty. During a meeting of the Senate Standing Committee on Information Technology and Telecommunication, members expressed concerns regarding the legitimacy of the PCC and the absence of parliamentary consultation in its establishment. Some participants questioned whether the council could be formed solely through an executive order. The Ministry of IT clarified that its role was limited to providing input on the council’s terms of reference, while several committee members argued that the Crypto Council should operate under the Ministry of IT instead of the Finance Division.
