Authorities prepare for a high-level meeting on June 2 to chart the course for virtual asset oversight. This follows a public clarification from the State Bank of Pakistan (SBP) confirming that cryptocurrencies are not explicitly banned, but currently remain outside the country’s legal and regulatory framework.
The upcoming session of the Pakistan Crypto Council (PCC) will be chaired by Finance Minister Senator Muhammad Aurangzeb and will include the SBP Governor, the Chairperson of the Securities and Exchange Commission of Pakistan (SECP), and senior representatives from the law and information technology ministries. A key agenda item is the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA), a proposed institution to supervise the crypto and digital finance landscape.
In a recent statement, the SBP emphasized that its previous guidance to banks and other regulated institutions—such as development finance institutions, microfinance banks, electronic money institutions, and exchange companies—was not a blanket ban on cryptocurrencies. Instead, the directive was issued to protect consumers and financial institutions from risks associated with the absence of a formal legal structure for virtual assets (VAs).
“This measure was implemented to shield regulated entities and their clients from potential vulnerabilities due to the unregulated nature of virtual assets,” the central bank stated, responding to recent remarks during a parliamentary finance committee meeting.
Meanwhile, the federal government reaffirmed before the National Assembly’s Standing Committee on Finance that cryptocurrency trading remains prohibited under current policy. Individuals engaging in such transactions may face scrutiny by the Financial Monitoring Unit (FMU) and the Federal Investigation Agency (FIA).
Finance Secretary Imdad Ullah Bosal noted that while digital assets are not yet supported by legislation, the Pakistan Crypto Council serves in an advisory capacity to recommend legal and procedural frameworks. The goal is to bring clarity and oversight to the virtual asset ecosystem.
The SBP also confirmed its active collaboration with the Finance Division and the PCC to develop a comprehensive regulatory regime. “A robust legal framework will help ensure investor protection, reduce ambiguity, and provide legal clarity surrounding virtual assets,” the SBP noted.
Founded in March, the Pakistan Crypto Council is led by Bilal Bin Saqib, Special Assistant to the Prime Minister on Blockchain and Crypto. Saqib, who also serves as the council’s CEO, is expected to present the official proposal for PVARA during the June 2 meeting.
The Council’s mission extends beyond regulation—it aims to drive innovation in blockchain technology, attract investment in the digital asset sector, and build a forward-looking financial infrastructure in Pakistan.
In a related development, the government recently allocated 2,000 megawatts of electricity to support a national network of Bitcoin mining and AI-driven data centers. At the Bitcoin 2025 conference held in Las Vegas, Saqib unveiled Pakistan’s first government-endorsed Bitcoin reserve and outlined a more progressive governmental stance toward digital finance and crypto adoption.
