Pakistan Reverses Course with Bold Crypto Regulation Push

Once firmly opposed to digital assets, Pakistan is now drafting a comprehensive crypto framework aimed at satisfying global compliance standards while fostering innovation.

Pakistan is now drafting a comprehensive crypto framework aimed at satisfying global compliance standards and fostering innovation, a stark turnaround from the total crypto ban that officials previously proposed.

This emerging regulatory landscape is unfolding as the country’s financial watchdogs endeavor to align with Financial Action Task Force (FATF) guidelines on anti-money laundering and counter-terror financing.

The Federal Investigation Agency (FIA) is leading the initiative, focused on formulating rules for KYC and oversight. While the framework still needs legislative approval, it signals a sharp pivot from early 2023, when officials, including the State Bank of Pakistan (SBP) governor, called for a full ban on crypto use.

The regulatory reset accelerated in early 2025 with the creation of the Pakistan Crypto Council—an initiative designed to attract investment, legitimize the industry, and support Web3 talent.

The Council’s CEO, Bilal Bin Saqib, has spoken about Pakistan’s potential as a low-cost innovation hub with a young, tech-driven population. One initiative that the Council is considering is channeling surplus energy into Bitcoin mining.

In a high-profile move in April, Binance co-founder Changpeng Zhao was appointed as an adviser to the Council, highlighting the country’s desire to blend local ambition with global expertise.

Pakistan’s stance on crypto has shifted from resistance to reinvention—suggesting that it now views digital finance as a strategic frontier rather than a threat.