In a major shift, Pakistan’s Finance Ministry is actively considering forming a National Crypto Council to regulate and legalize cryptocurrencies. This move signifies a growing interest in crypto adoption despite past resistance from regulatory bodies.
The decision follows a high-level meeting between Finance Minister Muhammad Aurangzeb and a foreign delegation, including advisors linked to former U.S. President Donald Trump. The council will include government officials, financial regulators, and industry experts, all working together to ensure a secure and sustainable crypto ecosystem.
Pakistan’s Crypto Landscape: 20 Million Users and Challenges
Pakistan has a thriving crypto community, with over 20 million citizens actively involved in digital asset transactions. However, they face multiple roadblocks, including high transaction fees, security concerns, and an unclear legal framework.
Recognizing these challenges, Aurangzeb has directed authorities to develop policies ensuring economic feasibility, regulatory compliance, and protection against illicit activities. The goal is to create a framework that fosters safe investments while preventing financial crimes.
A Shift in Pakistan’s Crypto Policy: From Ban to Regulation
Historically, the Pakistani government and its central bank opposed cryptocurrency adoption. In January 2022, the State Bank of Pakistan (SBP) even proposed an outright ban on digital currencies. Former Minister of Finance Aisha Ghaus Pasha went as far as saying that cryptocurrencies would never be legalized in the country.
Fast forward to November 2024, and the SBP took a different stance. It introduced proposals that paved the way for central bank digital currencies (CBDCs) and legal trading of crypto. Now, with a potential National Crypto Council, Pakistan appears to be taking proactive steps towards crypto adoption instead of banning it altogether.
Pakistan Aligns with Global Crypto Trends
The world is witnessing a surge in cryptocurrency regulation and adoption. The United States, Europe, and the United Arab Emirates (UAE) have all taken steps to increase regulation, enhance consumer protection, and encourage innovation.
By considering crypto adoption, Pakistan aims to align itself with global financial trends. A well-structured regulatory framework could attract foreign investments, boost the economy, and position Pakistan as a key player in the crypto space.
Foreign Delegation’s Role in Crypto Discussions
The shift in Pakistan’s crypto stance appears to be influenced by its recent meeting with key international figures. The foreign delegation included:
- Gentry Beach Jr. – Business associate of Donald Trump
- Nikita Goldsmith – Tech entrepreneur
- Alex Malkov – Blockchain consultant
- Jerad Finck – CEO of Cosmic Wire
Interestingly, the U.S. Embassy did not officially announce this visit, raising speculation about the behind-the-scenes efforts to push for crypto adoption in Pakistan.
What’s Next for Crypto in Pakistan?
With the formation of the National Crypto Council under discussion, Pakistan is at a critical crossroads. If implemented, this initiative could lead to:
- A regulated crypto market that protects investors
- Lower transaction fees for over 20 million users
- Legal clarity on buying, selling, and holding crypto
- Potential introduction of CBDCs for financial stability
While challenges remain, the government’s open-minded approach marks a major step towards crypto adoption. If Pakistan successfully implements its crypto regulations, it could emerge as a regional leader in blockchain innovation.
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