KARACHI: The recent formation of the Pakistan Crypto Council has highlighted the country’s will to embrace cryptocurrencies -- the widely popular digital currencies that regained prominence after US President Donald Trump’s return to the White House.
The crypto council in Pakistan aims to make a largely unregulated sector more transparent. A few days ago, the government appointed Bilal bin Saqib as the chief adviser to the finance minister for the Pakistan Crypto Council.
In his comments to The News, Web3 and digital asset consultant Arsalan Khan calls the appointment a “good selection”. But his optimism wanes as he mentions the bureaucracy which, he says, “will be the same. So, let’s hope [authorities] do get things done.”
CEO of antematter[dot]io, a technology engineering firm, Soban Raza lauds the government’s decision. He says that blockchains are going to be the next evolution of the capital markets and the whole financial ecosystem globally. When [Pakistan] is crypto-friendly, he adds, it is likely to invite global investors, capital and business -- people who are interested in building the next evolution of capital markets will be more open to working with local Pakistani businesses.
Digital rights activist Asad Baig says, “in principle it is a very good idea”. He adds that the step [of establishing a dedicated crypto council] shows the interest of the government in exploring what cryptocurrencies can do for the Pakistan economy.
Baig believes that these digital assets have an important role in countries’ economies -- a role that has become all the more relevant since Trump’s return to power. “We have seen what Trump has been saying about crypto and how he has been capitalising on this potential not just in terms of the currency itself but also in terms of political capital that it carries and mobilises.” Given this, he says, “it is a good idea to establish a [regulatory] body” which can explore the impact cryptocurrencies can have on the Pakistan economy.
Is Pakistan’s readiness to explore crypto potential is a result of Trump’s approval of the currency? This could be true. In his interview with a foreign outlet on Thursday, CEO of Binance, a popular cryptocurrency exchange firm, said he “expects Trump’s ‘pro-crypto’ legislation in the US to spur regulators in other parts of the world to follow suit.”
Raza adds that many asset management firms in the US are embracing real world assets being tokenised on blockchain, a step that improves liquidity and accessibility. “When big firms move in the [crypto] direction, it signals at the institutional acceptance of crypto and blockchain.” Given Pakistan’s relatively unsatisfactory economic scorecard, Raza thinks that such steps that sends green signals to crypto acceptance could result in appreciation from global institutions and businesses -- and ultimately the positive image of the country.
Baigs cautions that more is needed if the country is serious about tapping into the potential the currency holds. “Banning cryptocurrencies like Pakistan [has done in the past]” is not going to help the economy. He, however, acknowledges the “legitimate concerns” authorities have over the misuse of the currency. “We have heard about terrorist funding and drug use and how the currency is used as a tool to fuel the drug economy. Keeping all the pros and cons in mind, I think [establishing the council] is a good first step.”
But, he adds, that “we need a little more tangible action in terms of utilizing crypto to boost the economy.”
Raza lends support to this: “There are also some pitfalls that the government has to be aware of. The most important thing is that there are no conflicting stance on cryptocurrencies.” He cites the example of the US and how the country’s policies regarding certain coins are complex, scaring people away. “When Pakistan introduces cryptocurrency in the local ecosystem, it has to make sure that it is a regulated ecosystem – ensuring that all the relevant checks like KYC (Know Your Customer) are carried out efficiently.
In 2018, the State Bank of Pakistan (SBP) placed a blanket ban on cryptocurrencies.
Things started to take a turn after the US elections in November 2024. Blockchain analytics firm Chainalysis ranked Pakistan ninth on its Global Crypto Adoption Index 2024. Unofficial figures say that there are around 20 million crypto users within the country registered on different exchanges.
In January, a lawmaker from the ruling party PML-N introduced a private member’s bill, the Virtual Assets Bill 2025, to establish a regulatory framework for the digital asset. Then, Khan had expressed that since the world was treating crypto as a separate asset class, Pakistan had to adapt to this situation and bring in the regulations.
On the recently established council, Khan says that “it is too early to comment on their regulations as [authorities] have not finalised any yet. But it’s a starting point.” That since the government is finally realising the changing environment, it is “all in all a good thing”.
