Key Takeaways
- Pakistan’s federal government has proposed amendments to its SBP Act.
- The move could signal a historic shift in the country’s view on crypto.
- In 2023, Pakistan’s Minister of State for Finance and Revenue claimed that crypto would “never be legalized” in the country.
Pakistan has moved to legalize crypto, marking a major shift in its financial policy, which has historically labeled digital assets such as Bitcoin and Ethereum as illegal tender.
The federal government has proposed amendments to its State Bank of Pakistan (SBP) Act, allowing the SBP to issue the country’s money in digital currency.
Pakistan’s U-Turn
According to a report from The Express Tribune, government sources said that digital currency was being added to the SBP Act for the first time.
According to the sources, the SBP has regularly rejected digital currency proposals and issued warnings against their use until now.
The new amendments propose that digital currencies can be issued by the SBP as well as traditional finance. This would allow the central bank in Pakistan to manage the country’s money “in physical or digital or both forms.”
Pakistan’s Historic Stance Against Crypto
Pakistan’s central bank has generally adopted a wary stance toward cryptocurrencies, citing their volatility and challenges in controlling capital flows.
In 2018, the SBP issued a circular banning all financial institutions and banks from providing services to cryptocurrency exchanges or handling transactions involving digital assets.
This move limited the legal framework for cryptocurrency activities within the country and kept exchanges from operating through formal financial channels.
The circular stated that cryptocurrencies, including Bitcoin and Ethereum, were not legal tender in Pakistan.
“Virtual Currencies/Coins/Tokens provide a high degree of anonymity and potentially can be used for facilitating illegal activities,” the circular read.
“Also, due to the ambiguous nature of Virtual Currencies, no legal protection or recourse is available to any individual in the event of a loss incurred,” it added.
In 2023, Minister of State for Finance and Revenue Aisha Ghaus Pasha said that crypto would “never be legalized in Pakistan.”
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
