Pakistan’s Crypto Future, From Ban to Regulation — What’s Next?
Cryptocurrency in Pakistan remains one of the most discussed and controversial topics in the nation’s fintech ecosystem in 2026. While millions of Pakistanis trade, invest, and use digital assets daily, the legal and regulatory framework has lagged behind both public interest and global trends.
Legal Status: Still in Limbo
As of early 2026, the State Bank of Pakistan (SBP) and the Ministry of Finance have repeatedly stated that cryptocurrency does not have legal status in Pakistan, and trading remains technically illegal under existing laws. Officials told the National Assembly that crypto assets are not recognized as legal tender, and the 2018 SBP ban on crypto transactions still applies.(Daily Pakistan English News)
Even the Peshawar High Court confirmed this position, ruling that cryptocurrencies currently have no legal standing in the country — although the case was dismissed due to a new regulatory policy being developed.(Daily Pakistan)
This ambiguous legal situation has created a confusing environment for everyday traders. On one hand, the government and financial authorities caution against crypto trading; on the other hand, millions of citizens continue to invest in digital assets through online platforms, peer-to-peer markets, and foreign exchanges.
Government Moves Toward Regulation
Despite official warnings, Pakistan is actively working toward a formal regulatory framework. In 2025, the government passed the Virtual Assets Ordinance, 2025, which led to the formation of the Pakistan Virtual Assets Regulatory Authority (PVARA) — an autonomous agency tasked with regulating virtual asset service providers, licensing exchanges, and supervising trading activity under global compliance standards.(Wikipedia)
This is a major step toward normalizing digital asset activity and could open doors for legal crypto exchanges, custodial services, and blockchain ventures inside the country once licensing guidelines are finalized.
Strategic Crypto Initiatives
In late 2025, Pakistan announced its first government-backed strategic Bitcoin reserve, marking a symbolic shift in policy. The fund — held in a national Bitcoin wallet — aligns with efforts to embrace digital assets at a sovereign level rather than treating crypto as purely speculative.(Profit by Pakistan Today)
To support blockchain and mining innovation, the government has proposed allocating 2,000 megawatts of surplus electricity for Bitcoin mining operations and related technology infrastructure. Officials say this could attract foreign investment, create jobs, and build a new digital sector within the economy.
Market Response: Traders and Investors
Pakistani traders remain passionate about digital assets despite regulatory uncertainty. The country is home to millions of crypto users, many of whom use decentralized exchanges, crypto wallets, and peer-to-peer trading platforms to buy and sell Bitcoin, Ethereum, and other tokens.
Industry experts believe that clear rules and licensing would encourage greater institutional involvement — from licensed exchanges to payment service providers — which could reduce reliance on informal and sometimes unsafe trading channels.
Challenges and Opportunities
Risks remain significant. Without formal protection mechanisms, crypto holders in Pakistan face threats such as market volatility, cyber hacks, and scams. In 2025, the Pakistan Cyber Emergency Response Team issued advisories warning users about malware designed to steal crypto wallet keys, highlighting the need for stronger digital security.(Daily Pakistan)
However, the potential benefits are also large. A regulated crypto market could:
Boost remittance efficiency across borders
Attract foreign blockchain investments
Create new jobs in fintech and tech infrastructure
Help modernize Pakistan’s financial system
With PVARA and ongoing policy discussions, many traders remain optimistic that Pakistan will soon have a clear and secure crypto ecosystem.