May 2025 marks a historic turn in Pakistan’s financial and technological landscape as the government officially steps into the crypto industry. For a country that previously maintained a cautious, often skeptical stance on digital currencies, this move signals a strategic shift in policy — aiming to harness the potential of blockchain technology, regulate digital assets, and position Pakistan within the growing global crypto economy.
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The Formation of the Pakistan Crypto Council (PCC)
In April 2025, the Government of Pakistan announced the establishment of the Pakistan Crypto Council (PCC), a regulatory and advisory body tasked with overseeing the development of the nation’s blockchain and cryptocurrency ecosystem. The council is chaired by Finance Minister Muhammad Aurangzeb, with a diverse membership comprising government officials, financial regulators, tech entrepreneurs, and international advisers — including Binance co-founder Changpeng Zhao (CZ), who joins as a strategic consultant.
This initiative reflects the government’s recognition of cryptocurrency not merely as a speculative asset, but as a transformative financial tool with the potential to modernize payment systems, attract foreign investment, and create new economic opportunities.
From Ban to Regulation: The Policy Shift
Pakistan’s journey with crypto has been complicated. In 2018, the State Bank of Pakistan (SBP) imposed a blanket ban on banks and financial institutions dealing in digital currencies, citing risks of fraud, money laundering, and financial instability.
However, the meteoric rise of Bitcoin, Ethereum, and stablecoins — combined with growing remittance demands and the popularity of crypto trading among Pakistan’s youth — forced policymakers to reconsider. By late 2024, informal talks of crypto regulation began, culminating in the PCC’s formation.
Key Objectives of the PCC
The Pakistan Crypto Council has laid out an ambitious roadmap:
Develop a regulatory framework for cryptocurrency exchanges, digital wallets, and tokenized assets.
Monitor anti-money laundering (AML) and counter-terrorism financing (CTF) compliance within crypto transactions.
Encourage blockchain-based innovations in sectors like supply chain, health records, land registries, and fintech.
Promote safe crypto trading practices and increase public awareness about the risks and opportunities of digital assets.
Explore launching a Central Bank Digital Currency (CBDC) for Pakistan.
International Partnerships and Strategic Significance
Bringing in Changpeng Zhao (CZ) as an adviser is a strategic move, leveraging Binance’s global expertise in digital asset infrastructure. The PCC also aims to collaborate with international financial bodies like the Financial Action Task Force (FATF) and regional crypto-friendly nations such as UAE, Malaysia, and Singapore.
By positioning itself as a regulated, blockchain-forward nation in South Asia, Pakistan seeks to attract investment from crypto startups and blockchain enterprises looking for emerging markets.
Challenges Ahead
Despite its bold ambitions, the government faces several hurdles:
Public trust deficits due to past financial scams involving crypto.
Technical and cybersecurity capacity gaps within financial regulators.
Potential resistance from conservative factions wary of digital currencies’ volatility and speculative nature.
Integration with international AML/CTF standards to avoid FATF scrutiny.
A New Financial Frontier for Pakistan
Pakistan’s official foray into the crypto world could catalyze significant financial modernization if managed wisely. With proper regulations, public education, and international cooperation, digital currencies could provide new avenues for remittance services, financial inclusion, and economic resilience in a country where traditional banking often falls short.
