Pakistan is rapidly moving towards legalizing cryptocurrencies, an area that had previously been off-limits. The finance ministry announced on Tuesday that it is considering the creation of a National Crypto Council to regulate and integrate digital currencies into the country’s economy, aligning with global trends.
Finance Minister Muhammad Aurangzeb discussed the emerging digital asset landscape during a meeting with a foreign delegation, which included advisors to former U.S. President Donald Trump on digital assets. While the statement did not officially name the delegates, sources confirmed that key individuals such as Gentry Beach Jr., Nikita Goldsmith, Alex Malkov, and Jerad Finck were involved in the discussions. Beach, a business associate of President Trump, had previously met with Pakistani officials and discussed over $1 billion in potential investments in Pakistan.
The crypto council, which will include government representatives, regulatory bodies, and industry experts, will be tasked with overseeing policy development, addressing regulatory challenges, and ensuring that Pakistan’s digital asset market grows in a secure and compliant manner. The council will also work with international partners to create standardized frameworks for engaging in the global digital economy.
Until recently, Pakistan’s government and the central bank were firmly against cryptocurrencies, with past finance ministers declaring them illegal. The State Bank of Pakistan (SBP) had also issued warnings to the public against participating in crypto transactions. However, Finance Minister Aurangzeb’s recent comments have signaled a shift in policy, with him calling for an open-minded approach to the issue in light of global developments.
During the meeting, the participants discussed the global growth of cryptocurrency, the increasing adoption of digital assets, and the regulatory frameworks being implemented worldwide, particularly in line with U.S. government policies. Key topics included financial security, risk management, and the potential economic impact of digital assets on Pakistan.
Aurangzeb emphasized the need for a well-regulated framework that complies with international best practices, particularly the Financial Action Task Force (FATF) guidelines. He also stressed that integrating blockchain technology into Pakistan’s financial system is part of a broader effort to modernize the country’s economy.
The meeting also explored the concept of tokenizing key infrastructure and state-owned enterprise (SOE) assets, which could improve liquidity, attract more investors, and enhance efficiency in capital markets. Pakistan currently has over 20 million active users in the digital asset market, but they face challenges such as high transaction fees.
The government aims to introduce regulations that will facilitate the growth of digital assets while ensuring transparency, security, and compliance with international standards. Aurangzeb has called for a balanced approach that fosters innovation and investment in digital assets while maintaining strict regulatory oversight to prevent financial crimes.
The discussions concluded with a consensus to proceed cautiously yet strategically, ensuring that future developments in the digital asset space align with Pakistan’s national interests, global financial standards, and FATF guidelines.
