Islamabad (TDI): Pakistan is taking steps to legalize cryptocurrency, aiming to boost foreign investment and integrate blockchain technology into its financial system. The move marks a strategic shift in economic policy as the government seeks to modernize its financial sector and create opportunities in the digital economy.
To oversee the transition, the government has established the Pakistan Crypto Council (PCC), which will regulate cryptocurrency trading, develop policy frameworks, and ensure compliance with international financial standards. The initiative reflects a broader effort to position Pakistan as a regional hub for blockchain and digital asset investments.
Bilal bin Saqib, CEO of the Pakistan Crypto Council, emphasized the need for clear regulations to foster innovation and economic growth in the digital asset sector. He noted that establishing a structured framework would attract global investors and enhance Pakistan’s participation in the rapidly expanding crypto market.
The decision marks a major policy reversal, as Pakistan’s central bank had previously cautioned against cryptocurrency use, citing concerns over financial stability, illicit transactions, and lack of regulatory oversight.
However, as global financial institutions and governments increasingly recognize the potential of blockchain technology, Pakistan is aligning itself with the international trend of using regulatory clarity to drive capital inflows.
The legalization of cryptocurrency is expected to bring several economic benefits, including increased foreign exchange reserves, job creation in fintech and blockchain development, and improved financial inclusion for unbanked populations.
Experts believe that establishing a well-regulated crypto market could help Pakistan tap into the multi-billion-dollar global digital asset industry.
Pakistan’s regulatory authorities are now working on drafting legislation to ensure that cryptocurrency transactions comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
The government is also exploring partnerships with international blockchain firms to develop a secure and transparent digital trading ecosystem.
The move follows a global trend where countries are embracing cryptocurrencies as part of their financial and economic strategies.
Pakistan’s decision to legalize digital assets reflects a broader shift towards leveraging technology-driven financial solutions for economic stability and growth.
The Diplomatic Insight is a digital and print magazine focusing on diplomacy, defense, and development publishing since 2009.
