Pakistan Signals Bitcoin as Backbone for Regulated Crypto Ecosystem

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Pakistan Signals Bitcoin as Backbone for Regulated Crypto Ecosystem

Pakistan is advancing Bitcoin regulation through the Virtual Asset Regulatory Authority (PVARA) to transform its unregulated crypto market into a compliant ecosystem, leveraging Bitcoin as infrastructure for financial innovation. This shift aims to harness the countrys young population and surplus energy for mining and AI, positioning Pakistan as a global crypto leader.

• Pakistan ranks third in Chainalysis 2025 Global Crypto Adoption Index, reflecting rapid grassroots growth in digital assets.
• The government is establishing a strategic Bitcoin reserve and allocating 2,000 megawatts of electricity for mining operations.
• PVARA invites global exchanges to apply for licenses, fostering investment and regulatory compliance in the sector.

What is Pakistans Strategy for Bitcoin Regulation？

Pakistan Bitcoin regulation focuses on formalizing the countrys booming crypto sector into a regulated framework led by the Virtual Asset Regulatory Authority (PVARA). Senior officials emphasize Bitcoin and digital assets as essential infrastructure for a new financial system, moving away from traditional models to support the global souths economic needs. This approach includes creating a strategic Bitcoin reserve and inviting international firms to participate under compliant guidelines.

Derar Islim (left) and Bilal Bin Saqib (right) at the Bitcoin 2025 MENA Conference. Source: Bitcoin Magazine

Bilal Bin Saqib, chairman of PVARA and former special assistant to the prime minister on blockchain and crypto, highlighted this vision during a roundtable at the Bitcoin MENA Conference in Abu Dhabi. He stated, “We see Bitcoin, digital assets, and blockchain not just as speculation but as infrastructure. Not as noise, but as a foundation of a new financial rail for the global south.” Saqib‘s mandate is to convert Pakistan’s large unregulated market into an investment-ready ecosystem, capitalizing on its demographic advantages—70% of the population under 30—and Asias fastest-growing digital landscape.

Pakistans proactive stance contrasts with past caution, as officials now view crypto as a vital engine for growth. By allocating surplus resources like electricity for Bitcoin mining, the nation aims to attract foreign investment and create high-tech jobs, ensuring sustainable development in the digital economy.

How Has Crypto Adoption Evolved in Pakistan？

Crypto adoption in Pakistan has surged, with the country climbing to third place in Chainalysis 2025 Global Crypto Adoption Index, up six spots from previous years. This rise stems from grassroots enthusiasm amid economic challenges, including fiat inflation, driving citizens toward digital assets for financial inclusion and remittances.

The 2025 Global Crypto Adoption Index. Source: Chainalysis

Key milestones include the May announcement of a strategic Bitcoin reserve, signaling pro-crypto policies. That month, Pakistan dedicated 2,000 megawatts of excess power to Bitcoin mining and AI data centers, part of a broader digital transformation strategy. Financial authorities project this will draw international capital and bolster employment in emerging technologies. In September, PVARA opened applications for licenses, targeting major exchanges and service providers to integrate legally into the market.

Experts note that Pakistans 240 million population, combined with high mobile penetration, creates a fertile ground for blockchain applications. Saqib remarked, “If El Salvador can do it with 6 million people, imagine what Pakistan can do with 40 times the population and one of the fastest growing digital forces in Asia.” This regulatory push addresses risks like money laundering while unlocking potential in decentralized finance, with adoption rates exceeding many developed nations according to Chainalysis data.

The evolution reflects a global trend where emerging markets lead in crypto uptake. In Pakistan, peer-to-peer trading volumes have grown exponentially, supported by platforms that facilitate cross-border transactions. Government initiatives now aim to channel this energy into regulated channels, ensuring consumer protection and market stability.