In a revealing session of the National Assembly Standing Committee on Finance, the federal government of Pakistan and the State Bank of Pakistan (SBP) reaffirmed that the use of cryptocurrencies in the country remains illegal. The strong statements came despite recent government-led initiatives and announcements that appeared to support the promotion of digital currencies, highlighting a growing divide between policy direction and legal enforcement.
Federal Finance Secretary Imdad Ullah Bosal and SBP Executive Director Sohail Jawad clarified that any dealings involving cryptocurrencies are prohibited under existing regulations. According to them, individuals or entities involved in crypto trading are subject to investigation by the Financial Monitoring Unit (FMU) and the Federal Investigation Agency (FIA). Jawad reiterated that the SBP had, in 2018, instructed all its regulated financial institutions to refrain from facilitating cryptocurrency transactions and to report any such activity for enforcement action.
The reaffirmation of the crypto ban came just a day after Bilal Bin Saqib, the newly appointed Special Assistant to the Prime Minister (SAPM) on Crypto and Blockchain, made international headlines while advocating for the promotion of cryptocurrencies during a high-profile visit to the United States. Saqib, who also serves as CEO of the Pakistan Crypto Council (PCC), delivered a keynote speech at the Bitcoin Vegas 2025 conference, unveiling a government-led Strategic Bitcoin Reserve and announcing Pakistan’s plans to allocate 2,000 megawatts of surplus electricity for Bitcoin mining and AI data centers.
His remarks, which portrayed Pakistan as a reemerging hub of digital innovation, stood in stark contrast to the official narrative presented in the National Assembly. Finance Secretary Bosal emphasized that cryptocurrency is not recognized as a legal currency in Pakistan and that any advancement in the sector would require a comprehensive legal and regulatory framework, which does not currently exist.
The discord between various arms of the government raised concerns among lawmakers. Pakistan Peoples Party (PPP) MNA Sharmila Faruqi questioned the inconsistency in government messaging, especially considering Pakistan’s recent removal from the Financial Action Task Force (FATF) grey list. She pointed out the lack of a coherent legal structure despite visible government interest in promoting digital currencies through public announcements.
In response, SBP’s Sohail Jawad suggested that the PCC should engage other stakeholders to work towards a structured legal framework that could eventually support digital currencies in a regulated environment. He also highlighted the complexities of digital finance, noting that different types of assets, such as stablecoins, NFTs, and bitcoins, would each require separate sets of regulations.
PTI MNA Usama Mela added that despite the ban, crypto is actively used in Pakistan for purposes such as overseas transactions and vehicle purchases, suggesting a gap between policy enforcement and real-world use. He further claimed that there is a growing perception that the government itself intends to mine cryptocurrency using the recently allocated electricity resources.
The committee questioned the legal status of the Pakistan Crypto Council, to which Bosal responded that it currently operates under executive orders from the Prime Minister. However, he added that the government plans to introduce legislation to provide it with formal legal status.
Mirza Ikhtiar Baig of the PPP raised concerns about public perception, noting that government-backed promotions have led citizens to invest heavily in cryptocurrencies, influencing prices and investment behavior.
Meanwhile, in his keynote at Bitcoin Vegas 2025, Bilal Bin Saqib outlined an ambitious vision for Pakistan’s role in the global crypto ecosystem. He revealed plans for a national Bitcoin wallet and digital assets held in state custody as part of a long-term sovereign reserve strategy. He framed the initiative as a generational shift toward decentralized finance, signaling a bold but controversial step for a country where crypto remains officially outlawed.
The unfolding scenario reveals a striking policy paradox—while certain government figures promote digital asset innovation on global platforms, domestic regulatory bodies continue to maintain that cryptocurrency use is illegal. This policy disconnect underscores the urgent need for Pakistan to clarify its stance through a unified legal and regulatory framework that can reconcile innovation with oversight.
