Pakistan State Bank Clarifies Stance on Digital Assets Policy

Highlights:

• Pakistan’s central bank says digital assets were never officially declared illegal by the government or authorities.
• SBP says earlier advisories aimed to protect financial institutions from risks linked to virtual asset transactions.
• The Pakistan Crypto Council will meet on June 2 to discuss plans for a new authority to oversee digital assets.

The State Bank of Pakistan has clarified that they have not outlawed digital assets or their trading. According to the press release from the central bank, the actions it took before were meant as precautionary measures. The instructions were given to licensed banks, electronic money institutions and microfinance institutions. They were asked to avoid dealing in cryptocurrencies and virtual assets.

The State Bank of Pakistan (SBP) has cleared up confusion about the country’s stance on cryptocurrencies after recent reports suggested they are completely illegal. 

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According to the bank, this advisory aimed to protect financial entities and their customers from potential risks. It was not intended to impose a complete ban. The bank clarified that digital assets were never officially outlawed. Instead, it focused on warning financial institutions about possible negative impacts linked to unregulated digital transactions.

The clarification followed a recent session held by the National Assembly’s Standing Committee on Finance. During the session, officials suggested that trading and holding digital assets remained illegal in the country. They stated that such activities must be reported to the Financial Monitoring Unit. These reports are then forwarded to the Federal Investigation Agency for further review.

National Briefing Renews Focus on Pakistan Digital Assets Policy

The bank’s latest statement has placed fresh attention on the broader digital asset policy in Pakistan. The central bank stressed the need to build a formal structure that outlines the legal status of digital assets. It also pointed out that such a framework would help protect investors and provide better safeguards for users. At the same time, it would offer more clarity to institutions dealing with digital finance.

Pakistan continues to show strong activity in the digital asset space. According to previous rankings by the Global Crypto Index, the country once placed third in global adoption. With more than 20 million active users and transactions nearing $20 billion, interest remains high. The country also receives nearly $35 billion in remittances annually. These figures suggest a large opportunity for digital tools to support financial services, especially in areas like remittance and payments.

The focus on forming a clear digital asset policy comes amid rising demand for secure and organized systems. While digital currency becomes more popular, officials seek to balance new developments with responsibility. Such a framework would benefit both goals and aid financial companies in adopting global regulations.

Council Meeting to Discuss Oversight and Future Regulation

In light of these changes, the Pakistan Crypto Council will convene a major meeting on June 2. Senator Muhammad Aurangzeb, the Federal Finance and Revenue Minister, will chair the session. Key government officials will attend, including the State Bank governor and the chairman of the Securities and Exchange Commission of Pakistan.

The Pakistan Crypto Council will convene a high-level meeting on Monday, 2nd June 2025, to be chaired by Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue. The meeting will serve as a strategic forum to deliberate on the evolving regulatory and legal framework… pic.twitter.com/7FyJqFoLhp

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Others present will include the secretaries from the Law and Justice Division and the Ministry of Information Technology. Bilal Bin Saqib, who holds the offices of Minister of State and CEO of the Pakistan Crypto Council, is taking part in the event. The purpose of the meeting is to create a new team responsible for digital asset operations. The authority, named the Pakistan Virtual Assets Authority, will focus on safe practices, protecting users, and boosting innovation in the digital economy.