Despite increasing government-backed initiatives promoting Bitcoin adoption, Pakistan’s top financial authorities the State Bank and Ministry of Finance clarified on Thursday that cryptocurrency remains banned, with all related transactions deemed illegal under existing laws.
As per local media reports, during a recent meeting official meeting on Finance and Revenue, Finance Secretary Imdadullah Bosal clarified that although the prime minister has established a Crypto Council, led by the finance minister through an executive order to explore digital asset policy, the country’s cryptocurrency ban remains firmly in place under regulations set by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP)
The central bank issued a directive in 2024 declaring Bitcoin and other cryptocurrencies illegal, a position that remains unchanged.
Pakistan’s Crypto Council CEO Bilal Bin Saqib, who was recently named as PM’s assistant on crypto and blockchain, announced at the Bitcoin 2025 conference in Las Vegas that the country is moving ahead with a Bitcoin reserve.
Officials Highlight Crypto Policy Inconsistency
Committee members voiced concern over the government’s inconsistency in regards to crypto policy, questioning why the public was being encouraged to invest in crypto despite its legal ban, warning that such actions could expose investors to serious risks.
Recently Pakistan’s government announced to allocate 2,000 megawatts of electricity to power Bitcoin mining and artificial intelligence (AI) data centres. Committee members raised questions about whether the bitcoin mining would be in government or private sector hands, and noted that illegal hawala channels would likely be replaced by unregulated digital transfers.
The State Bank of Pakistan does not recognize crypto assets. In 2022, the SBP issued an official advisory urging the public to exercise caution and avoid trading in cryptocurrencies.
The committee’s debate on cryptocurrency was sparked by a proposed bill on digital currency regulations introduced by MNA Sharmila Farooqi. She emphasized the urgent need for a regulatory framework to curb potential money laundering risks, particularly in light of Pakistan’s recent removal from the Financial Action Task Force (FATF) grey list.
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