16/12/2025
🔹 1. Current Legal Status
Cryptocurrency is not yet fully legal tender in Pakistan. The State Bank of Pakistan (SBP) and the federal government still do not formally recognize crypto as legal currency and previous bans on unregulated crypto trading technically remain in effect under existing regulations.
Federal officials have stated the government neither promotes nor discourages crypto, emphasizing ongoing regulatory work and misuse prevention.
🔹 2. Regulatory Framework Under Development
Pakistan is actively building a formal crypto regulatory regime, including new laws and a regulatory authority:
✔️ Virtual Assets/Virtual Asset Service Providers Act / Bill
A Virtual Assets Act (2025) has been advanced to set up a legal framework for digital assets, licensing, and oversight.
✔️ Pakistan Virtual Assets Regulatory Authority (PVARA)
A regulatory body (Pakistan Virtual Assets Regulatory Authority) is being established to license and supervise crypto exchanges and service providers. Invitations have been sent to global crypto firms to apply for licences under this framework.
✔️ Pakistan Crypto Council
A national Crypto Council has been formally launched, headed by the Finance Minister, to shape policy and blockchain strategy.
🔹 3. Moves Toward Legalization & Innovation
While not fully legalized yet, Pakistan is undertaking significant pilot/regulatory initiatives:
🔸 MoU with Binance for Tokenization
The government signed an MoU with Binance to explore tokenizing up to $2 billion in sovereign assets (e.g., bonds, bills) and granted initial regulatory clearances toward exchange licensing.
🔸 CBDC and Stablecoin Plans
Pakistan is moving ahead with its own central bank digital currency (CBDC) project, including selecting a partner to build the infrastructure.
The regulatory authority has announced plans for a Pakistani stablecoin as part of the virtual assets ecosystem.
🔸 Consideration of ‘Amnesty’ for Traders
Government discussions have included proposals for time-bound amnesty to bring existing crypto traders into a regulated framework.
🔹 4. Regulatory and Enforcement Ambiguity
There’s ongoing inconsistency between policy intent and current enforcement:
⚠️ Some officials (e.g., SBP/SECP) still maintain that crypto is illegal under existing law and warn of enforcement actions.
⚠️ Lawmakers have introduced digital currency regulation bills, but full statutory legalization hasn’t been completed yet.
📊 Summary — Where Things Stand
Aspect Status (Dec 2025)
Crypto recognised as legal currency ❌ Not yet
Full regulatory framework in force ⚠️ In progress
Regulatory authority (PVARA) 🟡 Establishing/licensing underway
Crypto trading permitted under law ⚠️ Pending regulation
Tokenization & institutional engagement 🟢 Advancing
CBDC & stablecoin initiatives 🟢 Under development
📌 Bottom Line
Pakistan is in transition — moving from a situation where crypto was functionally banned or unregulated, toward a regulated digital asset ecosystem. Major frameworks like the Virtual Assets Act and a regulatory authority are taking shape, and pilot initiatives (tokenization, CBDC, stablecoin) signal strong government interest. However, full legalization and clear trading rules have not yet come into effect, and enforcement remains mixed.
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