Is Cryptocurrency Legal in Pakistan?
A New Era in 2025
In 2025, Pakistan has transitioned from a restrictive stance on cryptocurrency to a proactive regulatory approach. The government has established the Pakistan Crypto Council (PCC) under the Ministry of Finance to develop comprehensive crypto regulations and promote blockchain adoption. This marks a significant shift in the country's digital finance landscape.
Formation of the Pakistan Crypto Council
On March 15, 2025, Prime Minister Shehbaz Sharif constituted the Pakistan Crypto Council, chaired by Finance Minister Muhammad Aurangzeb. Bilal Bin Saqib serves as the CEO of the council, with a mandate to introduce new regulatory guidelines for digital currencies. The council aims to integrate blockchain technology into Pakistan's financial systems and attract international investment.
Strategic Advisory by Changpeng Zhao
In a groundbreaking move, Changpeng Zhao (CZ), the founder of Binance, has been appointed as a strategic advisor to the Pakistan Crypto Council. His role includes advising on regulatory frameworks, infrastructure development, and the adoption of cryptocurrency in Pakistan. CZ's appointment underscores the government's commitment to embracing innovation and positioning Pakistan as a leader in digital finance.
Regulatory Developments and Licensing
The Pakistan Crypto Council is working on implementing a tiered licensing system for cryptocurrency exchanges and service providers. This system aims to ensure compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. Additionally, the council is exploring the development of Shariah-compliant frameworks to align digital asset operations with Islamic finance principles .
Utilization of Surplus Electricity for Crypto Mining
Pakistan plans to leverage its surplus electricity by supporting Bitcoin mining and AI data centers. This initiative aims to utilize overcapacity in the country's energy sector, exacerbated by increased adoption of solar energy. By collaborating with mining firms, Pakistan seeks to establish mining centers in regions with excess power availability, turning a challenge into an economic opportunity .
Youth Empowerment and Blockchain Education
With over 60% of Pakistan's population under the age of 30, the government is focusing on upskilling the youth in blockchain and AI technologies. This initiative aims to create job opportunities, boost exports through digital services, and position Pakistan as a hub for emerging tech talent on the global stage.
Conclusion
Pakistan's proactive approach towards cryptocurrency regulation in 2025 signifies a pivotal moment in legitimizing digital assets in the country. The establishment of the Pakistan Crypto Council, strategic advisory by Changpeng Zhao, and initiatives to utilize surplus electricity for crypto mining reflect the government's commitment to fostering a secure and innovative digital finance ecosystem.
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