ISLAMABAD:
The federal government and the State Bank of Pakistan (SBP) reaffirmed on Thursday that cryptocurrencies remain illegal in Pakistan, warning that anyone involved with them could face investigations by the Financial Monitoring Unit (FMU) and the Federal Investigation Agency (FIA).
These statements came from Federal Finance Secretary Imdad Ullah Bosal and SBP Executive Director Sohail Jawad during a session of the National Assembly Standing Committee on Finance. The announcement followed closely after Bilal Bin Saqib, the newly appointed Special Assistant to the Prime Minister on crypto and blockchain, advocated for the promotion of cryptocurrencies during his recent visit to the United States.
“Cryptocurrencies are not recognized as legal tender in Pakistan,” Bosal emphasized, suggesting the committee invite the Pakistan Crypto Council (PCC) for a more detailed briefing. Bilal Bin Saqib also serves as the CEO of the PCC.
Bosal noted that the government’s work on cryptocurrencies is still in its very early stages and recommended establishing a comprehensive legal and regulatory framework before any further steps are taken. At present, no such framework exists.
Pakistan Peoples Party (PPP) MNA Sharmila Faruqi raised concerns about the conflicting government positions on cryptocurrencies, especially given Pakistan’s recent exit from the Financial Action Task Force (FATF) grey list. She pointed out the lack of a formal legal framework despite promotional activities.
SBP’s Jawad expressed hope that the PCC would engage other stakeholders to develop a robust regulatory structure.
While the finance secretary confirmed the illegality of cryptocurrency use, the finance ministry itself recently issued statements promoting crypto initiatives, including announcements this week.
Jawad explained that in 2018, the central bank issued binding instructions prohibiting regulated entities from trading or holding cryptocurrencies, requiring them to report violations to the FMU for FIA investigation.
Earlier, the finance ministry announced that Pakistan has allocated 2,000 megawatts of surplus electricity in Phase 1 to support Bitcoin mining and artificial intelligence data centers, a move championed by Bilal Bin Saqib.
This initiative aims to attract sovereign miners, technology firms, and clean energy partners globally. To facilitate this, Saqib is leading efforts to establish the Pakistan Digital Assets Authority (PDAA), which would serve as a regulatory body to support developers, protect investors, and formalize the country’s digital finance framework.
However, the committee hearing highlighted a clear disconnect between Pakistan’s current legal stance and its ambitions to promote digital currencies.
Jawad pointed out that only one country in the world ever recognized cryptocurrency as legal tender—and it has since reversed that decision. He added that various types of digital assets, including bitcoins, stablecoins, other altcoins, and non-fungible tokens (NFTs), each require distinct regulatory approaches.
PTI MNA Usama Mela noted that despite the ban, cryptocurrencies are still being used for international money transfers, such as buying used cars from Japan. He also suggested that the government might itself be planning to mine coins using the allocated 2,000 megawatts of electricity.
The committee also questioned the legal basis of the Pakistan Crypto Council. The finance secretary clarified that the council currently operates under executive orders from the prime minister, with plans underway to legislate formal legal status.
PPP’s Mirza Ikhtiar Baig observed that government promotion of cryptocurrencies in the media has led to increased public investment and rising prices.
The finance ministry’s press release further detailed Bilal Bin Saqib’s speech at Bitcoin Vegas 2025, where he addressed an audience including US Vice President JD Vance and Donald Trump’s sons, Eric and Donald Jr. Saqib unveiled Pakistan’s first government-led Strategic Bitcoin Reserve, aiming to position the country as a hub of digital innovation driven by its youth.
Speaking at the event, Bilal said, “Pakistan is no longer defined by its past. It is being reborn as a forward-looking hub of digital innovation—powered by its youth, sharpened by necessity, and led by a new generation of tech statesmen.”
He declared, “I’m not just here as a minister; I’m here as the voice of a generation — a generation that is online, on-chain, and unstoppable.”
Bilal also announced plans for a national Bitcoin wallet holding state-owned digital assets as a sovereign reserve, signaling long-term confidence in decentralized finance. He expressed gratitude to former US President Donald Trump for his role as a peacemaker in recent India-Pakistan tensions and his commitment to cryptocurrency adoption.
