Nearly every crypto enthusiast in Pakistan must be experiencing whiplash. After years of government hostility toward digital assets, Pakistan has executed the most dramatic policy reversal in its financial history. The same nation that once banned all crypto transactions is now embracing blockchain with open arms. Talk about mixed signals.
The journey has been anything but straightforward. In 2018, the State Bank slammed the door on crypto. By 2022, Pakistan somehow ranked third globally in crypto adoption. Makes perfect sense, right? Then in 2023, the Finance Minister declared Pakistan would “never” legalize cryptocurrencies. Never say never, apparently.
Fast forward to March 2025. The Pakistan Crypto Council emerges under Finance Minister Muhammad Aurangzeb, with crypto entrepreneur Bilal bin Saqib as Chief Advisor. The government that couldn’t make up its mind suddenly has a thorough plan. Economic realities have a funny way of changing perspectives.
The motivations aren’t exactly mysterious. With 64% of the population under 30, Pakistan is sitting on a potential Web3-native workforce goldmine. Remittances cost Pakistanis a fortune – over 5% on $31 billion annually. That’s money literally vanishing into thin air. These transactions could benefit from the 24/7 accessibility that decentralized finance offers compared to traditional banking systems.
Plus, watching Dubai and Singapore cash in on crypto while Pakistan sat on the sidelines probably stung a bit. The numbers tell the story. An estimated 20 million Pakistanis already use crypto, with transactions exceeding $20 billion. This strong user base helped Pakistan reach ninth place in the global crypto adoption index by Chain Analysis in 2024.
The proposed Virtual Assets Bill 2025 aims to harness this underground economy through regulatory frameworks, KYC/AML policies, and special economic zones for blockchain businesses. Challenges remain substantial. Money laundering risks haven’t disappeared overnight. The rupee could face new pressures. Cybersecurity threats loom large.
But Pakistan is studying successful models from the UAE, Nigeria, and Turkey, while aligning with global trends toward crypto acceptance. The timing isn’t coincidental either – with Trump’s pro-crypto stance in the US, the global tide is turning.
For a country perpetually searching for economic breakthroughs, this crypto U-turn might just pay off. Better late than never.
