Pakistan Signals Major Policy Shift with Plans for National Crypto Council

Pakistan’s finance ministry has announced its intention to explore the creation of a National Crypto Council, marking a significant shift in the country’s stance on digital assets. This move follows a high-level meeting between Finance Minister Muhammad Aurangzeb and a delegation of digital asset advisors with ties to former U.S. President Donald Trump.

As reported by local sources, the delegation included influential figures such as Gentry Beach Jr., a prominent investor who recently pledged $1 billion in investments to Pakistan, alongside tech entrepreneur Nikita Goldsmith, blockchain consultant Alex Malkov, and Cosmic Wire CEO Jerad Finck.

Though the U.S. Embassy did not officially announce the meeting, discussions reportedly centered on the growing global adoption of cryptocurrencies and the regulatory frameworks required for sustainable digital asset integration.

Pakistan’s Changing Crypto Landscape: From Restriction to Regulation

Until recently, Pakistan’s government and central bank strongly opposed the legalization of cryptocurrencies. The State Bank of Pakistan (SBP) had repeatedly warned against their use, citing concerns over financial stability, illicit transactions, and regulatory gaps. Previous finance ministers had also dismissed the notion of incorporating digital assets into the formal economy.

However, under Finance Minister Aurangzeb, the government now appears to be reconsidering its position, advocating for a more open-minded approach to evaluating the sector.

The proposed National Crypto Council would serve as a high-level advisory body, composed of:

• Government officials
• Regulatory authorities
• Industry experts

Its primary objectives would include policy development, addressing regulatory challenges, and ensuring compliance with international financial standards such as those set by the Financial Action Task Force (FATF).

Additionally, the council is expected to collaborate with foreign partners to develop global frameworks for digital economic cooperation—a move that could position Pakistan as a key player in the evolving digital financial ecosystem.

Addressing Financial Security, Risk Management, and Tokenization

The discussions in the meeting delved into critical aspects such as:

• Financial security and risk mitigation: Exploring ways to regulate digital asset markets while preventing misuse.
• Economic implications: Assessing how crypto adoption could impact the nation’s economy, investment landscape, and monetary policy.
• Tokenization of infrastructure and state-owned enterprises: Utilizing blockchain technology to increase liquidity, enhance transparency, and boost investor participation in national projects.

Aurangzeb acknowledged the challenges faced by Pakistani investors, noting that despite over 20 million active digital asset users in the country, high transaction fees and regulatory uncertainty remain key obstacles.

To address these concerns, the finance minister emphasized the need for a well-regulated framework that both encourages innovation and enforces strict oversight. As a next step, he has directed policymakers to draft a comprehensive regulatory framework that would strike a balance between economic growth and financial security.

The meeting concluded with a consensus on adopting a cautious but forward-looking approach, ensuring that any regulatory developments align with Pakistan’s national interests and international financial standards.

Pakistan Joins the Global Race for Crypto Regulation

Pakistan’s evolving stance on cryptocurrency regulation comes amid a broader global trend toward formalizing digital asset policies.

As reported in November 2024, the State Bank of Pakistan (SBP) proposed a policy framework that could legalize cryptocurrencies and introduce a Central Bank Digital Currency (CBDC). If approved, this plan would:

• Authorize state banks to issue digital currency (such as a digital rupee).
• Impose penalties on unauthorized crypto issuers, ensuring state control over digital financial transactions.

This marks a stark reversal from Pakistan’s previous anti-crypto stance, which as recently as 2023 saw officials proposing an outright ban on digital assets.

However, inflation and economic instability have fueled demand for alternative assets, prompting regulators to consider digital currencies as a means of financial inclusion and economic resilience. The SBP is reportedly targeting a 2025 launch for its digital rupee—a move that could further integrate blockchain technology into the country’s financial ecosystem.

Meanwhile, on the global stage, regulatory momentum is accelerating:

• The U.S. is actively reshaping its crypto policies, with the Trump administration reversing restrictive SEC policies and issuing an executive order supporting blockchain innovation.
• The European Union’s MiCA framework is setting a precedent for licensed crypto firms to operate across the European Economic Area, providing clarity on stablecoin issuance and compliance requirements.

As major economies establish regulatory blueprints for digital assets, Pakistan’s evolving stance could shape its position in the global crypto economy—potentially unlocking new investment opportunities, technological advancements, and financial inclusion initiatives.

By embracing a structured and transparent approach to crypto regulation, Pakistan has the opportunity to transform itself into a regional leader in blockchain-based finance while ensuring compliance with international financial standards.