Pakistan appears to be exploring a legal framework for crypto to potentially attract foreign investment.
It appears that Pakistan is investigating the possibility of establishing a legal framework for the trading of cryptocurrencies. The country’s objective is to entice international investment while also creating a more transparent environment for activities involving digital assets within the expanding cryptocurrency market in the country.
By highlighting Pakistan’s “low-cost, high-growth market” and a “web3 native workforce ready to build,” Bilal bin Saqib, chief executive officer at Pakistan Crypto Council, stated in an interview with Bloomberg that Pakistan is “done sitting on the sidelines” and wants to attract international investment.
“Pakistan is done sitting on the sidelines. We want to attract international investment because Pakistan is a low-cost high-growth market with 60% of the population under 30. We have a web3 native workforce ready to build.”Bilal bin Saqib
He described Pakistan as a country that is “done sitting on the sidelines. There are approximately 15 million to 20 million users of cryptocurrency trading in Pakistan, according to Saqib, which places Pakistan ninth globally in terms of cryptocurrency adoption.
This information comes from Chainalysis, a company that specializes in blockchain analytics. A significant portion of the country’s transaction volume “takes place through informal peer-to-peer markets,” according to data provided by Chainalysis.
Throughout the past few years, the government’s position on cryptocurrency has been ambiguous; however, it appears that officials are now contemplating adopting a more organized strategy.
With the statement that “Trump is making crypto a national priority and every country, including Pakistan, will have to follow suit,” Saqib alluded to the possibility that global developments, such as shifts in policy in the United States, could be influencing Pakistan’s discussions on the sector.
In November of 2024, the State Bank of Pakistan put forward a proposal for a legal framework that would recognize digital assets, such as cryptocurrency, as official forms of currency. Additionally, the proposal outlines a system that would penalize businesses that issue digital currency without proper authorization.
This proposal would make it possible for the State Bank of Pakistan (SBP) to exercise control over currency in both its physical and digital forms by incorporating digital currency management into its responsibilities.
