As Pakistan moves closer to finalizing its stance on cryptocurrency, key stakeholders have raised concerns about its adoption, regulation, and the potential impact on the nation’s economy.
Malik Muhammad Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), stressed the importance of ensuring that Pakistan retains control over its crypto blockchain and platforms. He emphasized that this would help prevent speculative activities and improve security. “The central bank should establish a mechanism to monitor cryptocurrency activities,” Bostan told Business Recorder.
Bostan also shared that the government is seeking guidance from the United States regarding the regulation of cryptocurrency. He highlighted that crypto adoption could help combat money laundering in Pakistan and attract further investment into the country.
Recently, the Finance Division revealed that the government is considering the formation of a National Crypto Council to guide the country’s digital asset ecosystem. This advisory body would consist of key government officials, regulatory authorities, and industry experts. The goal of the council would be to oversee policy development, address regulatory challenges, and collaborate with international partners to create standardized frameworks for digital economic engagement.
However, Zafar Paracha, Secretary General of ECAP, expressed reservations about the need for such a council. He argued that Pakistan already possesses the necessary infrastructure for cryptocurrency and that a separate council would only introduce unnecessary delays. “We have the expertise within the central bank, and creating another body might lead to more complications,” Paracha said.
He also warned that launching cryptocurrency in Pakistan would take time due to the associated risks, which require careful management.
Pakistan currently has over 20 million active users in the digital asset market, many of whom face high transaction fees, according to the Finance Division. Finance Minister Muhammad Aurangzeb has called for an open-minded approach to the potential introduction of cryptocurrency. At the ‘Pakistan Banking Summit 2025’ in Karachi, Aurangzeb stated that although cryptocurrency is already widely used in the informal market, the country needs to stay ahead of the curve in regulating digital assets and adopting emerging technologies like AI.
The discussions surrounding cryptocurrency regulation in Pakistan reflect the growing interest in digital finance, as well as the challenges the country faces in developing a robust framework for its safe and secure adoption.
