Cryptocurrency and Digital Assets Regulation in Pakistan (2025)

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Cryptocurrency and Digital Assets Regulation in Pakistan (2025)

Cryptocurrency and Digital Assets Regulation in Pakistan (2025)

Cryptocurrencies like Bitcoin, Ethereum, and other digital assets have gained global popularity. Pakistan, like many developing countries, faces the challenge of regulating this fast-growing sector while protecting investors and ensuring compliance with international standards such as FATF (Financial Action Task Force).

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1. Current Legal Status of Cryptocurrency in Pakistan

The State Bank of Pakistan (SBP) had earlier prohibited banks from dealing with cryptocurrencies. However, with the rise of fintech and blockchain, Pakistan is moving towards structured regulations. As of 2025:

  • No blanket legalization yet, but controlled frameworks are being discussed.
  • SECP (Securities and Exchange Commission of Pakistan) is drafting guidelines for crypto exchanges and digital asset service providers.
  • Cryptocurrency remains high-risk due to volatility and fraud concerns.

2. Role of SECP and SBP

The regulatory landscape is shared between SECP and SBP:

  • SECP oversees digital asset service providers (trading platforms, exchanges, and token issuers).
  • SBP regulates payment systems and prevents use of crypto in illegal transactions.
  • Both institutions coordinate to prevent money laundering and terror financing.

3. Taxation and Compliance

FBR (Federal Board of Revenue) has started looking into cryptocurrency gains:

  • Profits from trading digital assets may be subject to capital gains tax.
  • Crypto businesses may require registration and proper reporting.
  • Cross-border transactions face additional scrutiny under FATF compliance.

Note: Currently, trading via unregistered platforms carries significant risk. Investors should only use approved or licensed exchanges once introduced.

4. Global Influence on Pakistan’s Policy

Pakistan’s crypto regulation is shaped by international developments:

  • United States & EU: Tightening rules on stablecoins and digital securities.
  • UAE & Saudi Arabia: Emerging hubs for regulated crypto trading.
  • India: Introducing taxation without full legalization.

5. Future of Cryptocurrency in Pakistan

By 2025, experts expect:

  • Introduction of Digital Asset Regulatory Framework.
  • Licensing requirements for exchanges and wallet providers.
  • Possible launch of a Central Bank Digital Currency (CBDC) by SBP.
  • Increased taxation but also innovation opportunities in fintech.

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Conclusion

Cryptocurrency and digital assets represent both opportunity and risk for Pakistan. While regulation is still evolving, investors, startups, and legal professionals must stay updated with SECP, SBP, and FBR policies to ensure compliance and avoid penalties.

For more legal insights and tools, visit Lets-Legislate.

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