ISLAMABAD: Despite growing signals from certain officials promoting cryptocurrency and digital assets, Pakistan’s financial regulators have firmly restated that cryptocurrency remains banned across the country.
The State Bank of Pakistan (SBP) and the Ministry of Finance clarified during a parliamentary committee meeting that all crypto-related activities are still considered illegal under the current regulatory framework.
Finance Secretary Imdadullah Bosal told the National Assembly’s Standing Committee on Finance and Revenue that while the prime minister has established a Crypto Council to explore future policy options, no legal status has been granted to digital currencies.
He emphasized that crypto is not recognized as legal tender, and no legislation supporting its use has been passed by the parliament. This came despite Pakistan unveiling its first Strategic Bitcoin Reserve, which appeared to contradict the official position.
Contradictory Signals Create Investor Risk
The session laid bare the growing confusion surrounding the country’s approach to cryptocurrency. Lawmakers expressed concern over the mixed messages being sent to the public.
On one hand, officials are openly participating in high-profile crypto events abroad, while on the other, domestic transactions remain punishable under current laws.
SBP executive director Sohail Jawad confirmed that the central bank’s 2024 directive, which declared cryptocurrency transactions illegal, is still valid.
He further noted that the Financial Monitoring Unit (FMU) continues to refer crypto-related activities to law enforcement agencies.
Committee members were especially troubled by the fact that government figures like Bilal Bin Saqib, head of the Pakistan Crypto Council, are engaging internationally to promote crypto adoption despite its banned status at home.
Government’s Bitcoin Move Raises Eyebrows
The controversy intensified after Bilal Bin Saqib, recently appointed special assistant to the prime minister on crypto and blockchain, introduced Pakistan’s Strategic Bitcoin Reserve during a high-profile event in Las Vegas.
The launch was attended by notable global figures including US Vice President J.D. Vance and the Trump family. Saqib positioned this move as a rebranding of Pakistan as a future digital innovation hub, announcing a national Bitcoin wallet meant to serve as a sovereign reserve.
While the gesture aims to portray Pakistan as progressive in global crypto circles, it has added to domestic confusion. Critics argue that without a clear legal framework and public awareness, such high-level initiatives risk misleading citizens and investors.
A proposed bill by MNA Sharmila Farooqi aimed to address regulatory gaps, especially after Pakistan’s removal from the FATF grey list, but discussions remain in early stages.
