Pakistan, a nation of 241 million with a remarkably young population, is quietly fostering a cryptocurrency revolution in the northwestern part of the South Asian subcontinent. While the cryptocurrency market in Pakistan still operates in a "gray zone," the growing user base and gradually clarifying regulatory framework suggest this land could emerge as a pivotal hub for crypto economics in South Asia.
The Turning Point: CZ Joins Pakistan Crypto Council
On April 7, 2025, Changpeng Zhao (CZ) announced his role as Strategic Advisor to the Pakistan Crypto Council (PCC). This move highlights CZ's global influence in the cryptocurrency industry and marks a milestone for Pakistan's crypto landscape. As PCC's official advisor, CZ will provide guidance on regulatory frameworks, infrastructure, education, and application promotion while collaborating closely with the Pakistani government and private sector to build a compliant, inclusive, and globally competitive crypto ecosystem.
Structure of the Pakistan Crypto Council
Established in February 2025 under the Ministry of Finance, the PCC oversees blockchain technology and digital asset integration into Pakistan's financial sector. Its focus extends beyond regulation to fostering an environment where blockchain and digital finance can thrive. Key figures include:
- Chairman: Muhammad Aurangzeb (Finance Minister)
- CEO: Bilal bin Saqib (London-trained entrepreneur and Web3 advocate)
The council's board comprises leaders from the State Bank of Pakistan, Securities and Exchange Commission, Federal Law Ministry, and IT Ministry, ensuring a multidisciplinary approach to crypto governance.
Pakistan at a Glance
Geographic and Demographic Snapshot
- Location: Strategic crossroads between South Asia, the Middle East, and Central Asia
- Population: 241 million (60% under 30 years old)
- Economy: Facing inflation, debt crises, and currency devaluation but pursuing digital reforms
- Education: 44% of children (5–16) out of school, particularly in rural areas
- Infrastructure: 50% internet penetration rate; frequent power outages
Pakistan's Crypto Regulatory Evolution
1. Ban Phase (2018–2021)
In 2018, the State Bank of Pakistan (SBP) banned banks from processing cryptocurrency transactions, labeling them "unsafe." Platforms like Urdubit shut down.
2. Exploration Phase (2022–2024)
The SBP released reports analyzing crypto risks/opportunities while maintaining caution. Discussions about central bank digital currencies (CBDCs) began in 2023.
3. Thawing Phase (2025)
- PCC established to create legal frameworks for crypto
- Proposals to use excess energy for Bitcoin mining
- Focus on FATF compliance (AML/KYC regulations)
Cryptocurrency Adoption in Pakistan
Key Drivers
- Economic instability and currency devaluation
- High remittance inflows ($33B annually)
- Young, digitally native population
Adoption Metrics
- Global Rank: #9 in crypto adoption (Chainalysis)
- Active Users: 25M+ (PCC estimate)
- Popular Platforms: Binance, Bitget, OKX (P2P transactions dominate due to banking restrictions)
Opportunities and Challenges
Opportunities
- Remittances: Crypto could reduce high transfer fees
- Education: Initiatives like Giggle Academy may address literacy gaps
- Investment: PCC’s clarity could attract global Web3 projects
Challenges
- Rural internet/power infrastructure
- Regulatory balancing act with FATF standards
- Public awareness campaigns needed
FAQs
Q: Is cryptocurrency legal in Pakistan?
A: While not fully legalized, the PCC is developing frameworks to regulate crypto under strict AML/KYC rules.
Q: How do Pakistanis buy crypto without bank support?
A: P2P platforms using mobile wallets like JazzCash and Easypaisa are common workarounds.
Q: What’s PCC’s top priority?
A: Creating transparent regulations while exploring RWA tokenization and regulatory sandboxes.
Q: Why is CZ’s involvement significant?
A: His expertise could accelerate Pakistan’s transition into a Web3-friendly economy.
👉 Discover how Pakistan’s crypto policies compare globally
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