Pakistan is working on legalising cryptocurrency to attract international investments and position itself as a major blockchain finance hub in the South Asian region. The newly appointed Chief Executive Officer of the Pakistan Crypto Council, Bilal bin Saqib, announced the initiative in an interview with Bloomberg today, emphasising the need for clear regulations to bolster the nation’s burgeoning digital asset ecosystem.
The South Asian country’s push to formalise cryptocurrency comes at a pivotal moment. With an estimated 15 to 20 million Pakistanis already holding digital assets, the country’s crypto transactions are worth billions of dollars annually. Saqib underscored that legalising and regulating the sector could unlock substantial economic opportunities, including increased foreign direct investment and industry growth.
“Pakistan is done sitting on the sidelines,” he told Bloomberg. “We want Pakistan as the leader in blockchain-powered finance.”
The country’s demographic and economic advantages are central to this ambition. With over 60% of its population under the age of 30, Pakistan boasts a young, tech-savvy workforce ready to embrace Web3 technologies. Additionally, its low operational costs make it an attractive alternative to established crypto hubs like Dubai and Singapore.
Saqib highlighted that setting up crypto businesses in the country is significantly cheaper than in these global counterparts, offering a competitive edge for startups and investors alike.
To foster innovation while ensuring compliance, the Pakistani government plans to introduce regulatory sandboxes, controlled environments where crypto startups can operate under fast-track licensing processes. This approach mirrors strategies employed by leading digital asset markets and aims to encourage experimentation without compromising oversight.
Saqib noted that his country is actively studying the United Arab Emirates regulatory model, which has successfully positioned the UAE as a global leader in cryptocurrency adoption. The UAE’s Virtual Asset Regulatory Authority (VARA) and Dubai’s progressive policies have drawn numerous blockchain firms, a blueprint Pakistan hopes to adopt.
Pakistan is also collaborating with Nigeria and Türkiye to refine its policies. Nigeria, a top adopter of cryptocurrency in Africa, offers insights into balancing innovation with financial stability. Türkiye’s evolving framework provides lessons on integrating digital assets into a volatile economic landscape. These international partnerships signal Pakistan’s intent to align its regulations with global best practices, enhancing its appeal to foreign investors.
A balanced tax structure is another key component of the plan. Saqib emphasised that the government intends to adopt a “pro-growth” tax regime that avoids stifling the industry while encouraging investment. This approach contrasts with more restrictive tax policies in some jurisdictions and could position Pakistan as a haven for crypto entrepreneurs. Details of the tax framework remain under development, but Saqib assured that it would prioritise economic vitality.
Pakistan referenced Trump’s effect on his proposed crypto legalization
The global context adds urgency to Pakistan’s efforts. Saqib pointed to the potential influence of a Donald Trump presidency in the United States, which could accelerate crypto adoption worldwide. Trump has thrown his weight behind assets, including recently signing an Executive Order to establish the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile, fulfilling his campaign promise to position the United States as the “crypto capital of the world.”
“Trump is making crypto a national priority, and every country, including Pakistan, will have to follow suit or risk being left behind,” Saqib warned.
He argued that delays in regulation could exclude his country from the financial transformation reshaping global markets.
Pakistan’s crypto journey has not been without challenges. In 2018, the State Bank of Pakistan (SBP) issued a notice cautioning against virtual currencies and barring financial institutions from facilitating transactions. However, the Central Bank later clarified that no outright ban exists, softening its stance. Since then, adoption has surged, with Chainalysis ranking the South Asian country ninth globally for crypto adoption in 2024.
The market’s estimated value ranges between $18 billion and $30 billion, driven partly by citizens seeking hedges against inflation, which has exceeded 25% annually amid economic instability.
The Pakistan Crypto Council, under Saqib’s leadership, is tasked with spearheading this regulatory shift. Appointed earlier this month as chief adviser to Finance Minister Muhammad Aurangzeb on cryptocurrency matters, Saqib brings a wealth of experience as a Web3 investor and blockchain thought leader, recognised by Forbes for his contributions to the space.
The Council’s board, chaired by the finance minister, aims to craft a framework that ensures consumer protection, prevents financial crimes, and fosters innovation.
Analysts see Pakistan’s move as part of a broader trend among emerging economies to embrace digital assets. The UAE’s success, with over 1,800 digital asset companies employing 8,650 people according to the 2023 Crypto Oasis Ecosystem report, offers a compelling case study. Similarly, Nigeria’s regulatory evolution and Türkiye’s sandbox experiments highlight the potential rewards and risks of crypto integration.
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