Crypto Confusion in Pakistan: Ban Remains Amid Strategic Bitcoin Reserve Launch
Ambiguity sustains in Islamabad after State Bank of Pakistan's Statement.
Despite launching its first-ever government-led Strategic Bitcoin Reserve, Pakistan’s official stance on cryptocurrency remains contradictory and confusing.
In a recent meeting of the National Assembly’s Standing Committee on Finance and Revenue, both the State Bank of Pakistan (SBP) and the Ministry of Finance (MoF) reaffirmed that crypto transactions remain illegal under existing regulations. SBP officials emphasized that crypto dealings are still being referred to law enforcement for action, and that there is no legal framework to support digital assets at this stage.
Finance Secretary Imdadullah Bosal acknowledged the formation of a Crypto Council, but made it clear that this body only explores future policy—not legalization. “Crypto is not legal tender in Pakistan,” he stated, reaffirming that no parliamentary approval currently exists for its use.
Yet confusion reigns.
Lawmakers questioned why individuals are being encouraged—either implicitly or explicitly—to invest in crypto, while its status remains banned. Some even raised red flags about power allocation for mining operations, international engagements by the Pakistan Crypto Council (PCC), and the risk of foreign exchange flight via unregulated crypto channels.
Meanwhile, SBP insists on a firm stance, referencing global cautionary tales and asserting that Pakistan will not move forward unless a formal policy decision is taken at the top level.
So, where does Pakistan stand?
With talk of Bitcoin reserves on one hand, and law enforcement crackdowns on the other, Pakistan’s crypto policy reflects deep institutional disconnect and strategic ambiguity. Until a coherent framework is introduced—with legal backing and clear direction—the uncertainty will continue to cloud the country's digital future.
