Business Desk 
Aug 27, 2025
An undated image. — Canva
The issue of legalising crypto has stalled in Pakistan after the State Bank of Pakistan (SBP) refused to remove the ban without a framework. SBP said the premature recognition of digital currency might bring financial risks to the country and force global scrutiny on Pakistan.
The discussion happened at the first board meeting of the Pakistan Virtual Assets Regulatory Authority (PVARA), chaired by Blockchain and Crypto Special Assistant to the Prime Minister Bilal bin Saqib.
Finance Minister Muhammad Aurangzeb also attended the meeting along with officials from SBP, SECP, FBR, and the National Cyber Crime Investigation Agency.
The meeting was divided over the 2018 SBP circular on the prohibition of banks and financial institutions dealing in digital currencies, like Bitcoin, Litecoin and ICO tokens.
Some board members called for removing the ban immediately, but SBP Governor Jameel Ahmad insisted that there needed to be some licensing and monitoring in place first before proceeding.
Finance Minister Aurangzeb echoed this caution, citing concerns over compliance with the Financial Action Task Force (FATF) and the negative impact on Pakistan if there were funding for terrorism and sanctions were applied again because crypto transactions were still unmonitored.
As it stands, there are approximately 25 million Pakistanis engaged in digital businesses and crypto trading. Regulators estimate it will take six to eight months to develop a proper licensing regime under PVARA, covering compliance checks, operational standards, and international reporting.
The board approved steps to move forward, including launching a complaints portal, inviting independent crypto experts, and reviewing a draft regulatory framework. Sub-committees will work on taxation, sandbox experiments, and partnerships.
