Government Actions & Pakistan Crypto Council (PCC)
The Pakistan Crypto Council (PCC) was established in March 2025, led by Finance Minister Muhammad Aurangzeb, with Bilal Bin Saqib appointed as its CEO.
PCC aims to formulate blockchain and digital asset policies and create new investment opportunities in the country.
In May 2025, the government established Pakistan’s first Strategic Bitcoin Reserve, elevating Bilal Bin Saqib to the status of Minister of State.
❓ Conflicting Statements & Legal Status
While the PCC and some government circles promote crypto innovation, the State Bank of Pakistan (SBP) still maintains that crypto transactions are prohibited.
Financial institutions remain under a ban from facilitating crypto transactions, and senior banking officials continue to act cautiously.
✔️ Potential Benefits
1. Increased Investment – Experts believe that clear regulation could attract foreign investment and enable fintech startups to grow.
2. Taxation & Oversight – A regulated system would expand the tax net and help control money laundering.
3. Digital Financial Inclusion – Crypto and blockchain could enhance digital payment participation and banking access for underserved communities.
⚠️ Potential Risks
1. Weak Enforcement – Experts highlight that Pakistan’s regulatory enforcement is generally poor, particularly in complex fields like crypto.
2. Foreign Exchange Drain – Crypto might facilitate the unauthorized outflow of funds from Pakistan.
3. Fraud & Security Risks – Without clear laws, the chances of scams and cybercrime increase.
💡 Experts' Opinions
Former SBP Governor Syed Salim Raza said the underground crypto market already exists, so formal recognition and taxation would be better than denial—but expert-led regulation is essential.
Financial analyst Rashid Masood Alam argues Pakistan has historically failed at implementing sound financial laws, so effective crypto regulation may also be difficult.
Crypto expert Haroon Baig believes regulation will enable taxation and transparency. However, more bans or weak regulation could push capital flight.
Blockchain lawyer Abdul Rauf has proposed a comprehensive framework including licensing, AML/KYC, taxation, and involvement of financial institutions.
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✅ Overall Forecast
If regulation is effective: Pakistan could benefit through innovation, increased investment, financial inclusion, and blockchain-based systems—if backed by a strong legal and financial infrastructure.
If regulation is weak or unclear: The risk of fraud, capital flight, and tax loss increases. The general public could face uncertainty and potential harm.
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🧭 Advice for You (as a potential investor or citizen):
If you're interested in investing in crypto:
Wait for the government to finalize policies,
Understand the laws, licensing, and insurance frameworks,
Use only trusted platforms and exchanges,
Always seek advice from financial and legal experts before proceeding.
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