As Pakistan moves toward formalizing its stance on cryptocurrency, key stakeholders voiced their concern over adoption, regulation, and its impact on the country’s economy.
Speaking to Business Recorder, Malik Muhammad Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), said he recommended the government ensure that Pakistan retains control over its crypto blockchain and platforms to prevent speculation and enhance security.
“The central bank should develop a mechanism to monitor it,” he said.
Bostan informed that the government is seeking guidelines from the US regarding cryptocurrency.
He added that crypto adoption would help deter money laundering in Pakistan and open doors for further investments in the country.
Last week, the Finance Division stated the government would consider establishing a National Crypto Council to ensure that Pakistan’s digital asset ecosystem evolves in a secure, compliant, and sustainable manner.
The council “will serve as a dedicated advisory body comprising key government representatives, regulatory authorities, and industry experts,” the Finance Division said at the time.
“This Crypto Council will oversee policy development, and address regulatory challenges,” it added.
Moreover, the council will also collaborate with friendly countries to develop standardised frameworks for international digital economic engagement.
However, Zafar Paracha, Secretary General of ECAP raised concerns that establishing a separate council was not required.
“I believe that cryptocurrency and digital assets should be introduced in Pakistan, we have the infrastructure for it,” he said.
“However, to establish a crypto council when we already have a central bank with the required expertise in this field is unnecessary,” he said, adding that the council, which would consist of different stakeholders, could lead to delays.
The currency expert cautioned that launching a cryptocurrency may take time, “as there are a lot of risks associated with the digital currency, which needs to be managed”.
Pakistan currently has over 20 million active users in the digital asset market who face significant challenges, including high transaction fees, said the Finance Division.
Earlier, Finance Minister Muhammad Aurangzeb urged authorities, including the State Bank of Pakistan (SBP) to approach the potential introduction of cryptocurrency with an “open mind” amid significant developments in digital banking in Pakistan.
“The reality is that crypto is already in vogue here in the informal market and the numbers are what they are, even if they are one-fourth of what the numbers are being moved around, we need to think through and be ahead of the cycle in terms of the regulatory regime and think on how to move forward with AI and digital assets (in Pakistan),” Aurangzeb, who is also a former senior banker, said while addressing at the ‘Pakistan Banking Summit 2025’ in Karachi.