Pakistan is currently moving through a paradoxical stance on cryptocurrencies as the regulatory development around the crypto industry sees growth, while Pakistan’s State Bank (SBP) sticks to its 2018 ban on crypto trading. SBP said that digital assets cannot be legal tender, and this is to protect the economy.
According to a latest report from the country’s news outlet Dawn, the Pakistan government set up the Pakistan Crypto Council in March 2025, with the finance minister as its head. This indicated that the government was more open to the idea of using digital currencies in the national economy. This project also showed that regulations are changing, possibly because more investors and businesses are becoming interested in the benefits of blockchain technology.
This development paved the way for the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA). The authority’s job is to make rules, licenses, and laws for the digital asset sector. This indicated the government’s carefully planned approach to regulating cryptocurrencies, finding a balance between encouraging new ideas and protecting consumers, and keeping the economy stable.
Pakistan working on CBDC
The SBP has said that it is working on creating a Central Bank Digital Currency (CBDC), which is in line with what other central banks are doing around the world to look into the possibilities of digital fiat money.
Many people in Pakistan are already trading and investing in cryptocurrencies. This indicates that the rules need to catch up with what is actually happening in the market. Regulators will have to find a way to make the environment more balanced so that it encourages innovation while lowering the risks that come with digital currencies.
Also Read: Crypto Exchange Volume Hits $1.8T in August, Highest Since January
