TLDR
- Pakistan’s SBP continues its crypto trading ban but explores blockchain regulation and digital asset adoption.
- The government launched a Strategic Bitcoin Reserve to explore crypto’s potential role in finance.
- Pakistan’s PVARA is tasked with creating a regulatory framework for digital assets.
- SBP plans a CBDC pilot while considering limited crypto access under a regulated framework.
The State Bank of Pakistan (SBP) has maintained its longstanding ban on cryptocurrency trading, continuing to prohibit the use of digital currencies within the country. However, recent developments indicate that the government may be reconsidering its stance. Despite the ongoing ban, discussions regarding the potential legalization of cryptocurrencies and the development of a central bank digital currency (CBDC) are gaining momentum.
Pakistan Ongoing Crypto Ban
The SBP’s position remains firm on its 2018 directive that cryptocurrencies such as Bitcoin are not recognized as legal tender. The bank has long advised financial institutions to refrain from dealing in virtual currencies, whether through trading, transferring, or promoting them. This continued prohibition affects both individual and institutional involvement in crypto markets.
Recent events suggest a shift in the country’s perspective. In March 2025, the government formed the Pakistan Crypto Council, tasked with regulating blockchain technology and integrating digital assets into the broader national economy. This move is seen as part of the government’s effort to explore the benefits of blockchain while maintaining control over its implementation.
Shifting Policy Landscape and Strategic Bitcoin Reserve
Moreover, Pakistan launched a Strategic Bitcoin Reserve in 2025, signaling a nuanced approach to the growing digital asset space. This reserve is distinct from a full-scale legalization of cryptocurrencies but reflects a recognition of the potential role crypto could play in the country’s financial system.
The creation of the Pakistan Virtual Assets Regulatory Authority (PVARA) in July 2025 suggests that regulatory infrastructure is being put in place to support the future adoption of cryptocurrencies. The PVARA will be responsible for overseeing virtual assets and establishing the regulatory framework necessary for a controlled, safe introduction of crypto into Pakistan’s economy.
Central Bank Digital Currency Pilot
In addition to exploring digital assets, Pakistan is actively working on launching a central bank digital currency (CBDC). The SBP has announced plans to pilot this CBDC, which could offer a more controlled form of digital currency that aligns with the government’s monetary policies. This initiative is part of a broader global trend of central banks exploring digital currency options as a way to modernize financial systems while retaining regulatory oversight.
Discussions are underway to potentially allow limited cryptocurrency purchases under strict regulatory conditions. While the full legalization of cryptocurrencies remains a distant goal, these steps may represent a gradual path toward a more inclusive digital asset framework in the country.
Pakistan Crypto Regulations and the Path Forward
Even so, the government’s approach to cryptocurrencies remains cautious. Imdadullah Bosal, Finance Secretary, reiterated that a legal framework for digital currencies will only come into effect once the government makes a formal decision on the matter. While a gradual shift seems possible, the current legal status of cryptocurrencies remains unchanged: they are not considered legal tender.
As Pakistan moves toward integrating digital assets into its economy, the global crypto community is watching closely. The decisions made over the coming months will likely shape the role that cryptocurrencies play not only in Pakistan’s financial markets but also in how other nations approach the regulation and adoption of digital currencies.
For now, Pakistan remains in a holding pattern, exploring the potential of cryptocurrencies while maintaining a cautious stance on their broader use.
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