Pakistan, a nation of over 241 million people with one of the youngest populations in South Asia, is quietly stepping into the global cryptocurrency spotlight. Once marked by regulatory resistance, the country is now navigating a transformative path toward embracing blockchain innovation and digital assets. With shifting government attitudes, the formation of a national crypto council, and rising grassroots adoption, Pakistan may soon emerge as a key player in the region’s digital economy.
The Rise of the Pakistan Crypto Council (PCC)
In February 2025, the Ministry of Finance proposed the establishment of the Pakistan Crypto Council (PCC), officially launched in March as a regulatory and strategic body overseeing the integration of blockchain and digital assets into the financial system. Unlike traditional oversight bodies, the PCC aims not only to regulate but also to foster innovation, consumer protection, and financial inclusion within a compliant ecosystem.
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Chaired by Finance Minister Muhammad Aurangzeb, the PCC brings together high-level stakeholders including the Governor of the State Bank of Pakistan, the Chairman of the Securities and Exchange Commission of Pakistan (SECP), the Federal Law Minister, and the Federal IT Minister. This cross-sectoral governance ensures balanced input from finance, law, technology, and regulation.
At the helm as CEO is Bilal bin Saqib, a London-based entrepreneur and Forbes 30 Under 30 honoree. An advocate for social innovation, Bilal holds a master’s degree in Social Innovation & Entrepreneurship from the London School of Economics. He is also the founder of Web3 Pak, a leading local Web3 community, and previously served as a growth advisor for African digital asset platform Busha.
Beyond his tech credentials, Bilal has been recognized for humanitarian work—receiving the UK Prime Minister’s Point of Light award and an MBE for pandemic relief efforts. His leadership reflects the PCC’s dual mission: driving technological progress while advancing social impact.
A Global Signal: CZ Joins as Strategic Advisor
In a landmark move on April 7, 2025, Changpeng Zhao (CZ), former Binance CEO and a pivotal figure in global crypto development, joined the PCC as a strategic advisor. His role will focus on shaping regulatory frameworks, building infrastructure, expanding education initiatives, and promoting real-world applications of blockchain technology.
“This is not just about regulation,” said Finance Minister Aurangzeb. “We are sending a clear message: Pakistan is open for innovation. With CZ on board, we’re accelerating our vision to become a regional hub for Web3 and digital finance.”
CZ’s involvement is expected to lend credibility to Pakistan’s regulatory efforts and attract international investment and talent. His experience navigating complex global compliance landscapes could prove instrumental in aligning Pakistan’s policies with international standards such as those set by the Financial Action Task Force (FATF).
Pakistan at a Glance: Demographics and Digital Potential
Geographically positioned at the crossroads of South Asia, Central Asia, and the Middle East, Pakistan covers 796,000 square kilometers and ranks as the world’s fifth most populous country. Over 60% of its population is under 30, creating a vast digital-native demographic ripe for financial innovation.
According to Pakistan’s 2024 National Census, the population stands at approximately 241 million, with nearly 79% under 40 years old. This youth bulge presents both an opportunity and a challenge—while it fuels demand for modern financial tools, it also underscores urgent needs in education and employment.
Despite progress in mobile connectivity—with over 189 million telecom subscribers and 108 million 3G/4G users—internet penetration remains around 50%, particularly limited in rural areas. Infrastructure gaps, including frequent power outages and low financial literacy, pose barriers to widespread crypto adoption.
Economically, Pakistan faces inflationary pressures, currency depreciation, and external debt challenges. These conditions have inadvertently fueled interest in alternative assets like Bitcoin, which many see as a hedge against inflation and capital controls.
Regulatory Evolution: Three Phases of Crypto Policy
Pakistan’s journey with cryptocurrency can be divided into three distinct phases: prohibition, exploration, and breakthrough.
Phase 1: Prohibition (2018–2021)
In April 2018, the State Bank of Pakistan (SBP) issued a sweeping directive banning banks and financial institutions from facilitating any transactions involving virtual currencies. While not criminalizing individual ownership or peer-to-peer (P2P) trading, the ban pushed crypto activity into a legal gray zone.
The move led to the shutdown of local exchanges like Urdubit and discouraged formal investment. However, underground P2P markets continued to grow.
Phase 2: Exploration (2022–2024)
In 2022, the SBP published a report titled Crypto Assets – Potential Risks and Opportunities, acknowledging growing global interest in digital assets despite reiterating concerns over money laundering, capital flight, and monetary sovereignty.
Former SBP Governor Reza Baqir highlighted Pakistan’s rapid shift toward digital payments and expressed cautious optimism about central bank digital currency (CBDC), viewing it as a tool for financial inclusion and cross-border efficiency.
By June 2023, the SBP announced plans to develop its own CBDC. In November 2024, the federal government proposed amendments to the State Bank of Pakistan Act to legalize central bank-issued digital currency while penalizing unauthorized issuance—marking a significant policy pivot.
Phase 3: Breakthrough (2025)
The year 2025 marks a turning point. With FATF removing Pakistan from its “grey list” in 2022, the country enjoys improved financial standing, enabling more openness to regulated digital innovation.
The creation of the PCC signals intent to build a clear legal framework for crypto trading and investment. Bilal bin Saqib has even proposed leveraging surplus energy for Bitcoin mining, aiming to turn an economic challenge into an opportunity.
The council is also exploring real-world asset (RWA) tokenization and regulatory sandboxes to test innovations under supervision—all while ensuring compliance with KYC/AML standards.
Cryptocurrency Adoption: Driven by Necessity and Innovation
Chainalysis ranks Pakistan 9th globally in grassroots cryptocurrency adoption—just behind leaders like Nigeria, India, and Indonesia. Estimates suggest more than 25 million active users, driven largely by remittances and inflation hedging.
Pakistan received around $33 billion in remittances in 2024, making it the fifth-largest recipient globally. Traditional channels often charge high fees and suffer delays—making crypto-based remittance solutions increasingly popular.
Popular platforms among Pakistani users include Binance, Bitget, OKX, Bisq, and Paxful, all supporting P2P transactions via local payment methods like JazzCash, Easypaisa, and Redot Pay.
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Opportunities Ahead: Education, Talent, and Global Investment
Beyond speculation, crypto offers tangible benefits for Pakistan:
- Financial Inclusion: Millions remain unbanked; decentralized finance (DeFi) can offer accessible alternatives.
- Web3 Talent Development: The PCC plans nationwide blockchain education programs to train local developers.
- CZ’s Giggle Academy: The Web3 learning platform may provide free access to underserved youth, including out-of-school children.
- Foreign Direct Investment (FDI): A clear regulatory framework could attract global capital into local startups.
Challenges Remain
Despite momentum, obstacles persist:
- Low internet penetration outside urban centers
- Frequent power outages affecting mining and trading
- Limited digital literacy and cybersecurity awareness
- Ongoing need for robust consumer protections
FAQ
Q: Is cryptocurrency legal in Pakistan?
A: As of 2025, crypto is not fully legalized but operates under evolving oversight by the Pakistan Crypto Council. While banks cannot process transactions directly, P2P trading continues widely.
Q: Can I buy Bitcoin in Pakistan?
A: Yes. Many residents use P2P platforms like Binance or Paxful with local payment apps such as JazzCash or Easypaisa to purchase Bitcoin securely.
Q: What role does CZ play in Pakistan’s crypto future?
A: CZ serves as a strategic advisor to the PCC, helping shape regulations, promote education, and connect Pakistan with global Web3 networks.
Q: Will Pakistan launch its own cryptocurrency?
A: Not a decentralized cryptocurrency—but the State Bank plans to issue a central bank digital currency (CBDC) in the coming years.
Q: How might crypto help Pakistan’s economy?
A: By reducing remittance costs, increasing financial access, fostering tech entrepreneurship, and attracting foreign investment into digital infrastructure.
Q: Are there risks to crypto adoption in Pakistan?
A: Yes—risks include fraud, volatility, lack of consumer protection, and potential misuse for illicit activities if proper safeguards aren’t enforced.
Final Thoughts: A Nation at a Digital Crossroads
Pakistan stands at a pivotal moment. From initial skepticism to strategic embrace, its journey reflects a broader trend where emerging economies leverage blockchain to solve real-world problems.
With strong youth engagement, rising remittance needs, and top-tier leadership guiding policy reform, Pakistan has the ingredients to build a resilient and inclusive digital economy. Success will depend on sustained investment in infrastructure, education, and regulatory clarity.
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