Pakistan Initiates Regulatory Framework for Digital Assets
Pakistan has embarked on the process of establishing a detailed regulatory framework for digital and virtual assets, marking a pivotal step by the government to officially oversee the rapidly expanding cryptocurrency sector. This initiative was unveiled during a significant meeting of the Pakistan Crypto Council (PCC) held in Islamabad on Monday, which was chaired by Finance Minister Muhammad Aurangzeb, as reported by The News. Key participants in the meeting included various stakeholders who engaged in critical discussions.
Formation of a Technical Committee
A technical committee has been established, comprising representatives from the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP), the Law Division, and the IT and Telecom Division. This committee’s primary role is to assess draft legislation and suggest a solid regulatory framework along with governance structures. The proposed framework aims to address multiple facets, such as licensing, compliance, and innovation within the digital asset space, ensuring investor protection and fostering financial inclusion.
Global Trends and Local Developments
This move aligns with a broader global trend toward the regulation of digital assets and follows notable developments within Pakistan, including the introduction of the country’s inaugural government-led Strategic Bitcoin Reserve and the creation of a national Bitcoin wallet. Although cryptocurrencies are not currently governed by official regulations in Pakistan, this new initiative signals a clear intention to formalize the sector and integrate it into the national financial system.
Balanced Regulatory Approach Emphasized
The council highlighted the importance of adopting a balanced regulatory approach that safeguards investors, enhances transparency, and encourages innovation while maintaining financial stability. Aurangzeb reiterated the government’s dedication to modernizing the financial sector, emphasizing that any future-ready regulatory framework should promote inclusion, transparency, and economic resilience.
Recent Announcements and Clarifications
This meeting followed a significant announcement made last week by Saqib, who introduced Pakistan’s first government-led strategic Bitcoin reserve during the Bitcoin Vegas 2025 conference in the United States. On Friday, the SBP clarified that cryptocurrencies are not outright banned but remain outside the current legal framework. The central bank advised regulated entities—such as banks, development finance institutions, microfinance banks, electronic money institutions, and payment service providers—to refrain from engaging with virtual assets due to the lack of legal and regulatory safeguards, not because these assets are illegal.
Concerns Over Regulatory Legitimacy
The journey toward regulating virtual assets in Pakistan faces uncertainty. In a session of the Senate Standing Committee on Information Technology and Telecommunication, members expressed concerns regarding the legitimacy of the PCC and the absence of parliamentary consultation in its establishment. Some committee members questioned whether the council could be formed solely through an executive order. During the meeting, the Ministry of IT clarified that its role was limited to providing input on the council’s terms of reference. Nonetheless, numerous committee members argued that the Crypto Council should operate under the Ministry of IT rather than the Finance Division.
