What happened?
Despite government-backed initiatives to promote Bitcoin, Pakistan’s top financial authorities have reiterated that cryptocurrency remains banned. The State Bank of Pakistan and the Ministry of Finance have declared all related transactions illegal under existing laws. Although a Crypto Council has been established to explore digital asset policy, the ban on cryptocurrencies, declared in 2024, is still in effect.
Who does this affect?
This affects Pakistani citizens who may be tempted to invest in cryptocurrencies due to mixed signals from the government. It also impacts businesses and investors looking to capitalize on the growing crypto market within Pakistan. Additionally, it has implications for the country’s tech industry, which is exploring new innovations like Bitcoin mining and artificial intelligence data centers.
Why does this matter?
The inconsistency in Pakistan’s crypto policy could lead to market confusion and potential financial risks for investors. As the country allocates resources like electricity for Bitcoin mining, the regulatory ambiguity can deter foreign investment and hinder technological advancements. This situation highlights the need for clear regulations to ensure stable market conditions and protect against money laundering risks.