Pakistan Reverses Course with Bold Crypto Regulation Push

Crypto

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.

The turnaround comes as the countrys financial watchdogs seek to align with FATF guidelines on anti-money laundering and counter-terror financing.

The Federal Investigation Agency is leading the charge, proposing rules centered on Know Your Customer (KYC) checks and oversight mechanisms. While the framework still awaits legislative approval, it marks a sharp pivot from just two years ago, when officials were calling for a full ban on crypto use.

This 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.

Council CEO Bilal Bin Saqib recently highlighted Pakistans potential as a low-cost innovation hub with a young, tech-driven population. One initiative even considers channeling surplus energy into Bitcoin mining.

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

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