Crypto in Pakistan: Between Challenges and Evolving Regulations!

Updated

September 4, 2025

Gambar Crypto in Pakistan: Between Challenges and Evolving Regulations!

Jakarta, Pintu News – Pakistan is experiencing a paradoxical situation in cryptocurrency adoption. On the one hand, the government has established a new regulatory authority, but on the other hand, the State Bank of Pakistan (SBP) has maintained a ban on crypto trading that has been in place since 2018.

Check out the full information below!

Crypto Regulation Development in Pakistan

The Pakistani government has shown a more open attitude towards digital currencies with the establishment of the Pakistan Crypto Council in March 2025. The move signals a change in regulation that may be triggered by growing interest from investors and businesses in blockchain technology.

The newly established Pakistan Virtual Assets Regulatory Authority (PVARA) is tasked with creating regulations, licenses, and laws for the digital assets sector. This shows the government’s cautious approach to regulating crypto, with the aim of striking a balance between encouraging innovation and protecting consumers and economic stability.

PVARA is expected to bridge the gap between existing trading activities and the currently evolving regulatory framework. With this authority in place, it is expected to create a more conducive environment for the safe and controlled growth of the digital economy.

Prohibitions and Restrictions by the State Bank

pakistan adopts digital currency — Source: Cryptoslate

Despite the progress in regulation, the State Bank of Pakistan is sticking to its stance by maintaining the ban on crypto trading that has been in place since 2018. The SBP argues that digital assets cannot be considered a legal currency and the ban is necessary to protect the economy.

This decision reflects concerns over the risks that may arise from the uncontrolled use of cryptocurrencies. However, the SBP also recognizes the potential of digital currencies and is working on the creation of a Central Bank Digital Currency (CBDC).

This shows that while there is caution, there is also recognition of the benefits that this new technology may offer. CBDCs are expected to provide a safer and more regulated alternative to unregulated cryptocurrencies.

Crypto Trading and Investment among the Public

Despite the SBP ban, many Pakistanis continue to trade and invest in cryptocurrencies. This shows the gap between the existing regulations and the actual market reality.

This activity demonstrates that there is an urgent need for regulation that can keep pace with market developments. Regulators in Pakistan are now faced with the challenge of creating an environment that supports innovation while mitigating the risks associated with digital currencies.

PVARA is expected to create a clearer and more effective framework to regulate and facilitate the growth of the crypto sector in the country.

Conclusion

With these developments, Pakistan is at a crossroads between regulation and innovation. Going forward, the balance between economic security and acceptance of new technologies will largely determine the future direction of the country’s digital economy.

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