Despite the formation of a Pakistan Crypto Council (PCC) and the announcement of a government-led Strategic Bitcoin Reserve, cryptocurrency remains banned in the country, raising questions about the government’s sincerity to its crypto ambitions.
Appearing before the National Assembly Standing Committee on Finance and Revenue, Finance Secretary Imdadullah Bosal said that even though the PCC was formed through an executive order to explore digital asset policy, regulations retained the ban on cryptocurrency. “There will be a legal framework only when the government formally takes a decision, but the current legal status is that crypto is not legal tender in Pakistan,” he said, adding Parliament must approve cryptocurrency use.
The finance secretary’s assertion was supported SBP Executive Director Sohail Jawad, who told the parliamentary body that the central bank had declared Bitcoin and other cryptocurrencies illegal in 2024. In this regard, he said, the Financial Monitoring Unit was still referring crypto-related cases to law enforcement agencies for further action.
According to Jawad, a national working group of digital currency has been established and suggestions forwarded to the PCC. He noted El Salvador was the only country in the world with legalized cryptocurrency, adding even they were reconsidering the decision.
In light of the disclosures, the members of the committee voiced confusion over the government’s current approach to cryptocurrencies. PPP’s Mirza Ikhtiar Baig questioned why the public was being encouraged to invest in crypto before it was legalized, while the PTI’s Mohammad Mobeen said the SBP, rather than the government, should lead any charge with regards to cryptocurrency. He further questioned the recent decision to allocate 2,000MW for Bitcoin mining while it remained illegal.
The committee also questioned how crypto would be regulated, noting illegal channels could switch to the digital currency, impacting remittances and anti-money laundering efforts.