Pakistan's Crypto Shift: 25 Million Users, $30 Billion Remittance Market

Pakistan's stance on cryptocurrency has undergone a significant transformation, shifting from a crypto-averse position to an active effort to build a crypto-friendly economy. This change is largely influenced by the pro-crypto policies of US President Donald Trump, which have inspired the Pakistani government to follow suit. The Pakistan Crypto Council (PCC) has been instrumental in this shift, working to create a comprehensive regulatory framework for cryptocurrencies.

In May 2023, Aisha Ghaus Pasha, a former Pakistani Minister of State for Finance and Revenue, stated that cryptocurrency would never be legal in Pakistan. This stance was influenced by the Financial Action Task Force's (FATF) removal of Pakistan from its gray list and the imposition of strict anti-money laundering restrictions. However, a year later, on November 4, 2024, the Pakistani government reversed its position and began considering the regulation of cryptocurrencies as legal tender. This change coincided with the US elections, where Donald Trump won and subsequently signed an executive order in January 2025 to form a Working Group on Digital Assets. This group was tasked with exploring a comprehensive digital asset regulatory framework.

Following Trump's lead, the Finance Ministry of Pakistan announced its intention to form a “National Crypto Council” to legalize crypto. This announcement came after Pakistani Finance Minister Muhammad Aurangzeb met with a foreign delegation, including Trump’s advisers, to discuss digital asset regulations. The Pakistan Crypto Council was officially formed in March 2024, with the Finance Minister as Chairman and Bilal bin Saqib as CEO. Saqib acknowledged Trump's role, stating that he is “the biggest bullish catalyst for crypto in history” and that every country, including Pakistan, will have to follow suit to avoid being left behind.

In the United States, Trump has ensured that private company executives, CEOs, and founders are involved in leading crypto innovation. He appointed ex-Paypal COO David Sacks as the “White House A.I. & Crypto Czar” to guide policy for the Administration and hosted the first White House Crypto Summit, bringing private industry leaders together to discuss crypto legislation. The Pakistan Crypto Council has adopted a similar public-private collaborative approach towards the crypto economy, recognizing the importance of joint partnerships between the government and industry leaders in building a future-proof digital financial ecosystem.

Pakistan’s Prime Minister Shehbaz Sharif recently convened a high-level meeting in Islamabad to discuss investments in Bitcoin mining and asset tokenization. Key government officials, the CEO of the Pakistan Crypto Council, and representatives from major crypto firms attended. Sharif directed the Pakistan Crypto Council to engage with private sector leaders to build infrastructure for Bitcoin mining and tokenization, proposing the use of Pakistan’s excess energy to power Bitcoin mining operations. The meeting also covered plans for a $3.5 billion Bitcoin mining infrastructure and leveraging blockchain technology to strengthen Pakistan’s economic resilience. Additionally, the focus was on creating compliant asset tokenization products and establishing a robust regulatory framework for digital assets.

This shift in governance, mirroring American strategies for crypto industry collaboration, highlights the critical role of private enterprises in shaping policy. Industry experts possess deep insights into market needs, making their input invaluable in crafting effective regulations. According to a 2024 Chainalysis report, Pakistan ranked ninth in global crypto adoption. The Pakistan Crypto Council’s CEO emphasized that with an estimated 25 million active users and a $30 billion foreign remittance market, blockchain presents an unparalleled opportunity for innovation and growth. The CEO stated, “Pakistan is open for business.”

For Pakistan to develop its crypto ecosystem securely and sustainably, the government cannot act alone. Just as the US integrates industry leaders into regulatory discussions, Pakistan must foster collaboration between government representatives, regulatory authorities, and crypto experts. By aligning with Trump’s playbook, the Pakistan Crypto Council has made a bold statement: “Pakistan is done sitting on the sidelines!” As a high-potential, cost-effective market with a young and tech-savvy workforce, Pakistan must harness the expertise of private enterprises to drive job creation and regulatory advancements. With Pakistan accelerating its policy shift to strengthen the blockchain industry, a robust public-private partnership is the key to establishing the country as a leading crypto innovation hub in South Asia.