While most countries have been cautiously advancing toward crypto regulation, Pakistan has performed a dramatic about-face. Just seven years ago, the State Bank of Pakistan slammed the door on crypto transactions. Fast forward to March 2025, and they’re rolling out the red carpet for blockchain bros with the establishment of the Pakistan Cryptocurrency Council. Talk about whiplash.
The numbers tell the story. An estimated 15-20 million Pakistanis already hold crypto assets—despite the ban. In 2022, Pakistan ranked third globally in crypto adoption. Turns out prohibition doesn’t work so well in the digital age. Shocker.
Despite the ban, 15-20 million Pakistanis jumped into crypto anyway. Prohibition in the digital age? Good luck with that.
Demographics are driving this shift. With 60% of Pakistan’s 240 million population under 30, the government finally realized cryptocurrency isn’t just some passing fad. These young Pakistanis need jobs, and the fintech sector could deliver them. This youth-driven market has pushed Pakistan to become third in adoption despite the legal restrictions, highlighting the ineffectiveness of prohibition.
The economy stands to benefit too. Current remittance fees are highway robbery at 5-9%. Crypto could slash those costs dramatically. Plus, when your national currency performs like a falling knife, Bitcoin starts looking pretty good. Stablecoins could provide a less volatile alternative for Pakistanis seeking to preserve value during market fluctuations through regular audits that confirm sufficient backing.
Global politics played a role. Trump’s pro-crypto stance influenced Pakistan’s decision. Nobody wants to be left behind while Dubai and Singapore become crypto powerhouses. FOMO is real, even for governments.
The market responded immediately. Bitcoin jumped 3% to $65,000 after the announcement. Trading volume between Bitcoin and the Pakistani rupee shot up 50%. Money talks.
Challenges remain. KYC/AML protocols need serious work. Scammers are certainly salivating at the opportunity. And balancing innovation with financial stability isn’t exactly easy. The country’s estimated $20 billion in cryptocurrency holdings could dramatically impact the national economy if not properly regulated.
The proposed Virtual Assets Bill 2025 aims to thread that needle. A national regulatory commission, special economic zones, and a tax structure that won’t scare everyone away are all in the works.
After years of resistance, Pakistan is finally embracing crypto’s potential. Better late than never, I guess.
