As of April 2025, cryptocurrency in Pakistan occupies a legal gray area. While not officially banned, the regulatory framework remains under development.
Banking Restrictions:
Since 2018, the State Bank of Pakistan (SBP) has prohibited financial institutions from processing cryptocurrency transactions. Consequently, banks have been known to warn customers against using their accounts for crypto-related activities, and there have been reports of accounts being frozen due to such transactions
Regulatory Developments:
In a significant shift, the Pakistani government has shown intent to regulate and legalize cryptocurrency. In March 2025, the Pakistan Crypto Council (PCC) was established to devise a clear regulatory framework aimed at attracting foreign investment and integrating crypto into the financial system
Current Status:
Despite these developments, cryptocurrencies are not yet recognized as legal tender in Pakistan. The SBP has not authorized any individuals or organizations to offer services related to virtual currencies . Therefore, while discussions on legalization are underway, the use of cryptocurrencies remains unregulated, and individuals engaging in crypto transactions do so at their own risk.
Conclusion:
Until a formal regulatory framework is established, it's advisable to exercise caution when engaging in cryptocurrency activities in Pakistan. Monitoring official announcements from the SBP and the PCC will provide the most accurate guidance on the evolving legal status of cryptocurrencies in the country
