The State Bank of Pakistan (SBP) and the Ministry of Finance (MoF) have been at odds over the issue of cryptocurrency, with the former declaring its transactions illegal and the latter advocating for regulation. The government’s stance on crypto remains unclear, leaving many wondering about its intentions.
The SBP’s Stance
The SBP has consistently maintained that cryptocurrency transactions are illegal under current regulations. Finance Secretary Imdadullah Bosal stated that the prime minister’s recent formation of a Crypto Council does not change the fact that crypto is not a legal tender in Pakistan. He also confirmed that the federal budget will be announced on June 10 and that discussions with the International Monetary Fund are ongoing.
- SBP Executive Director Sohail Jawad stated that the central bank had issued a directive in 2024 declaring the legal status of Bitcoin and other cryptocurrencies illegal.
- He also mentioned that the Financial Monitoring Unit (FMU) is still referring crypto-related cases to law enforcement agencies for further action.
Regulatory Framework
The Ministry of Finance has expressed a desire to introduce a regulatory framework for cryptocurrency, but only if the government decides to legalize it. Finance Secretary Imdadullah Bosal stated that a legal framework will only be introduced if the government formally takes a decision.
- Committee members expressed confusion over the government’s approach, questioning why the public was being encouraged to invest in crypto when it remained legally banned.
- Some members pointed out that the government had allocated power capacity for mining operations, despite the ban.
The Pakistan Crypto Council
The Pakistan Crypto Council (PCC) was officially launched in March this year to regulate and integrate blockchain technology and digital assets into the country’s financial landscape. The council’s CEO, Bilal Bin Saqib, has been holding meetings with high-profile global leaders.
- Bilal Bin Saqib announced the establishment of a national Bitcoin wallet, holding digital assets already in state custody.
- He also thanked President Trump for his role as a peacemaker in the recent India-Pakistan conflict and for his commitment to crypto adoption.
The Strategic Bitcoin Reserve
The Pakistan Crypto Council unveiled the country’s first government-led Strategic Bitcoin Reserve. The unveiling was held at an event in Las Vegas, United States, and attended by US Vice President J.D. Vance and the sons of US President Donald Trump.
“This wasn’t just a policy moment — it was a rebranding of a nation,” said Bilal Bin Saqib, CEO of the Pakistan Crypto Council.
The Need for Regulation
The committee discussion on cryptocurrency was triggered by a bill on digital currency regulations proposed by MNA Sharmila Farooqi. She argued that Pakistan needed to regulate crypto to prevent money laundering, especially after its exit from the Financial Action Task Force’s grey list.
The Government’s Dilemma
The government’s stance on crypto remains unclear, leaving many wondering about its intentions.
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