Syed Saif Ul Hassan 
Oct 15, 2025
In line with Pakistan inching closer to legalising cryptocurrency, the Federal Board of Revenue (FBR) is seemingly striving to tax crypto and relevant transactions in the country.
The development came to light as the national revenue board is reportedly engaging with experts to create regulations for cryptocurrency and its taxation.
Once finalised, the crypto regulations and taxation framework will encompass crypto transactions in the official tax system and address the growing digital asset economy of Pakistan.
This move comes on the heels of a request from the Federal Tax Ombudsman (FTO), who received a complaint about the FBR's tax policies on cryptocurrencies.
The FTO highlighted the urgent need for crypto regulation, noting that Pakistan ranks as the sixth largest crypto user globally, with nearly 9 million users out of 560 million worldwide.
Although the State Bank of Pakistan (SBP) issued a warning about the risks associated with virtual currencies in April 2018, it did not make them illegal. The crypto market in Pakistan has since flourished, attracting both retail and institutional investors.
The FTO raised concerns that significant crypto transactions are happening outside the tax system, calling it “a height of neglect.” It also pointed out the untaxed and undocumented profits from crypto trading, urging the FBR to establish legal guidelines to tap into this revenue domain.
It also emerged that the FBR's Policy Wing is consulting with experts to suggest legal amendments for the upcoming Finance Bill. This legislation is expected to integrate Pakistan’s progressing digital economy into the formal financial system.
