Pakistan's position in the crypto world is complex and evolving. Here's a breakdown of where things stand as of now:
1. Government Stance
Regulatory Ambiguity: The government and State Bank of Pakistan (SBP) have historically been cautious or hostile toward cryptocurrencies. In 2018, SBP issued a circular banning banks and financial institutions from dealing in crypto.
Recent Moves: As of 2024, the government has discussed regulating crypto rather than outright banning it, but no clear, nationwide regulatory framework exists yet.
2. Public Adoption
High Interest: Despite regulatory uncertainty, Pakistan has one of the highest crypto adoption rates in the region. Many people use platforms like Binance, KuCoin, and P2P networks for trading.
Remittances and Investment: Crypto is popular for receiving remittances and as an investment hedge due to inflation and currency depreciation.
3. Mining
Untapped Potential: Pakistan has cheap electricity in some areas (especially in the north), which could be great for crypto mining. Some provinces have shown interest in exploring mining as an industry.
Pilot Projects: In 2021, Khyber Pakhtunkhwa announced plans for a state-backed crypto mining farm, but updates since have been limited.
4. Legal Risks
No Legal Protection: Since crypto is in a legal grey area, users have no legal protection if they're scammed or lose funds.
FIA Actions: The Federal Investigation Agency (FIA) has occasionally cracked down on illegal crypto schemes or Ponzi setups, but not on regular users.
5. Future Outlook
Regulation Likely: Experts expect some form of regulation or licensing for exchanges and users in the coming years.
CBDC Development: Pakistan has shown interest in a Central Bank Digital Currency (CBDC), which may affect how private cryptos are handled.
