ISLAMABAD (PEN) : Pakistan’s Finance Secretary Imdadullah Bosal confirmed on Thursday that cryptocurrency trading remains banned in the country, despite the formation of a “crypto council” under a recent government directive. The clarification came during a session of the National Assembly’s Standing Committee on Finance, where lawmakers raised serious concerns about public misconceptions and regulatory ambiguity surrounding digital assets.
Regulatory Framework Still in Initial Phase
Briefing the committee, Bosal emphasized that while a Pakistan Crypto Council has been established under an executive order, its role is strictly advisory.
“The work regarding cryptocurrency is still in its initial stage,” he said. “A legal and regulatory framework is yet to be drafted and will require parliamentary approval before any institution can be established.”
He reiterated that the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) have not lifted their bans on crypto trading, and that digital currencies are not recognized as legal tender in the country.
Lawmakers Alarmed by Mixed Messaging
The committee, chaired by MNA Nafisa Shah, expressed alarm over contradictory government actions. MNA Mirza Ikhtiar Baig questioned the logic behind allowing significant energy allocation for crypto mining if the activity remains illegal.
“On one hand, you’re saying crypto is banned, and on the other, you’ve allocated 2000 megawatts of electricity for it?” he asked. “People are being lured into investing. If crypto is not accepted tomorrow, their money will vanish.”
MNA Sharmila Faruqui voiced strong opposition to promoting cryptocurrency in the absence of regulation.
“There is no regulatory framework yet, and people are being misled into believing crypto is legalized,” she warned, citing risks such as money laundering, terror financing, and tax evasion.
Calls for Public Awareness and Government Clarity
Committee members unanimously called for greater transparency and public awareness campaigns. Chairperson Nafisa Shah noted that while crypto is globally categorized as a commodity, it remains non-legal tender in most jurisdictions.
“The government must clearly state crypto’s current legal status to prevent misleading the public,” she urged.
MNA Shahram Tarakai cautioned that failure to regulate swiftly could result in large-scale capital flight via crypto platforms.
“Billions of dollars will leave the country through cryptocurrency, and later the government will be left asking what went wrong,” he warned.
The committee decided to summon the chairman and members of the Pakistan Crypto Council in its next session for a detailed briefing on the future regulatory roadmap.
Strategic Bitcoin Reserve Announced Abroad
Meanwhile, Pakistan has announced its first-ever strategic Bitcoin reserve. Special Assistant to the Prime Minister for Crypto and Blockchain, Bilal bin Saqib, made the declaration during the Bitcoin Vegas 2025 conference in the United States.
“Our youth are online and on-chain. Pakistan, with over 40 million crypto wallets and an average age of 23 years, is now being recognised for its future rather than its past,” Saqib said, highlighting the nation’s growing digital engagement on the global stage.
