Despite recent official efforts to promote cryptocurrency, Pakistan’s central bank and finance ministry have reiterated that digital currencies remain illegal under current laws. This clarification was made during a meeting of the National Assembly Standing Committee on Finance and Revenue, where Finance Secretary Imdadullah Bosal confirmed that no legal framework presently permits the use or trading of cryptocurrencies within the country.
Bosal explained that while the Prime Minister established a Crypto Council, chaired by the Finance Minister, to explore policies around digital assets, the existing ban on cryptocurrency transactions remains firmly enforced by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP). The government has yet to receive parliamentary approval for any legal framework that would allow cryptocurrency use or trading.
The committee members raised concerns and confusion over the contradictory messages being sent to the public. Mirza Ikhtiar Baig questioned why citizens are being encouraged to invest in cryptocurrencies despite their illegal status, highlighting the risks this poses to investors who may face penalties or loss of funds. Another committee member, Mohammad Mobeen, criticized the government for its apparent engagement with cryptocurrency matters while the SBP continues to uphold the ban. He also pointed to the paradoxical situation where electricity is being allocated for crypto mining despite its prohibited status under law.
Adding to the controversy, Mobeen referenced Pakistan Crypto Council CEO Bilal Bin Saqib’s high-profile meetings with global figures, including US political leaders, suggesting a disconnect between official policy and diplomatic or industry-level activities. Committee member Shahram Tarakai warned that the government could lose valuable foreign exchange reserves due to unregulated cryptocurrency transactions, which could negatively impact the country’s fragile economic situation.
Sohail Jawad, an SBP executive director, reaffirmed the central bank’s 2024 directive that declared Bitcoin and other cryptocurrencies illegal in Pakistan. He noted that the Financial Monitoring Unit continues to refer crypto-related cases to law enforcement agencies for action. Jawad also mentioned that Pakistan has formed a national working group on digital currency and has contributed to discussions with the Pakistan Crypto Council. He pointed out that El Salvador is currently the only country to have fully legalized cryptocurrency, but even it is reconsidering that decision given the risks involved.
The SBP strongly advises the public to avoid trading in cryptocurrencies, emphasizing that these digital assets function through decentralized verification systems and are not recognized as legal tender in Pakistan. The central bank’s stance remains clear despite the government’s outward-facing engagement with blockchain and crypto innovation.
The committee’s discussion was triggered by a digital currency regulation bill proposed by Member of National Assembly Sharmila Farooqi, who stressed the importance of regulating digital currencies to prevent money laundering. This focus on regulation has grown in urgency following Pakistan’s recent removal from the Financial Action Task Force’s grey list.
Coinciding with these developments, the Pakistan Crypto Council CEO Bilal Bin Saqib, who was recently appointed as the special assistant to the prime minister on crypto and blockchain matters, unveiled Pakistan’s first government-backed Strategic Bitcoin Reserve at the Bitcoin Vegas 2025 event held in Las Vegas. The event attracted notable figures such as US Vice President J.D. Vance and Donald Trump’s sons, Eric and Donald Jr.
The Ministry of Finance described the event as a milestone, highlighting Saqib’s declaration of Pakistan’s emergence as a forward-looking digital innovation hub, driven by its young population and technological ambition. Saqib also announced the launch of a national Bitcoin wallet designed to hold digital assets as a sovereign reserve, signaling Pakistan’s long-term interest in decentralized finance frameworks rather than speculative cryptocurrency trading.
In his remarks, Saqib thanked former US President Donald Trump for his role as a peacemaker in recent India-Pakistan tensions and for supporting cryptocurrency adoption. This juxtaposition of government caution with promotional efforts underscores the complex and evolving landscape of digital currencies in Pakistan.
