ISLAMABAD: The use of cryptocurrencies in Pakistan is illegal, the National Assembly was told on Wednesday, reaffirming the government’s firm stance against virtual currencies amid growing public interest and global adoption.
The clarification came during a session of the lower house of parliament when lawmakers questioned the legal status of cryptocurrencies like Bitcoin and Ethereum, and the government's policy regarding their use and promotion. Officials from the Ministry of Finance and the State Bank of Pakistan (SBP) reiterated that the trading, holding, or promotion of cryptocurrencies is not permitted under current Pakistani laws.
The SBP representative present during the briefing informed the House that cryptocurrencies are not recognized as legal tender in Pakistan and that no individual or organization is allowed to engage in crypto-related activities through licensed financial institutions.
“The use of cryptocurrencies is illegal and poses a significant risk to consumers and the financial system,” the SBP official said. “We have issued multiple warnings over the years to protect citizens from financial fraud, money laundering, and terrorism financing linked to crypto assets.”
The reaffirmation of the ban comes just a day after Pakistani entrepreneur and influencer Bilal Bin Saqib made headlines during his visit to the United States, where he publicly advocated for cryptocurrency promotion in Pakistan as part of a broader digital economy vision. Speaking at a tech forum in San Francisco, Saqib urged Pakistani policymakers to embrace blockchain innovation and adopt a regulatory framework to support cryptocurrency use.
Saqib’s remarks triggered mixed reactions on social media, with many praising his forward-looking approach while others warned that crypto promotion must align with national financial laws and security concerns.
In response to a question in the Assembly about Saqib’s statements, the finance ministry maintained that while blockchain as a technology may offer benefits in transparency and traceability, cryptocurrencies themselves remain outside the legal and regulatory framework. "There is a distinction between supporting blockchain technology and legalizing digital currencies," the ministry clarified.
The federal government and SBP have long expressed concerns over the unregulated nature of cryptocurrencies and the volatility of their value. In 2018, the SBP issued a circular barring all banks and financial institutions from processing, trading, or promoting virtual currencies. In 2022, Pakistan's government also made clear its intention to never legalize cryptocurrencies, citing the recommendations of the Financial Action Task Force (FATF).
Crypto transactions continue to operate in Pakistan through informal peer-to-peer (P2P) channels and foreign exchanges, despite the regulatory crackdown. The lack of regulation has also made it difficult to trace illicit financial flows, a key concern for law enforcement and financial watchdogs.
Experts believe that while Pakistan’s youth remain keenly interested in crypto investments, the government is likely to maintain its cautious stance due to international pressure, risk of capital flight, and fears of economic destabilization.
As of now, the official message remains unambiguous: the use of cryptocurrencies is illegal in Pakistan, and those found dealing in them could face legal action. The government, however, has left the door open to exploring regulated fintech innovation under strict guidelines in the future.
