ISLAMABAD – Pakistan’s crypto story is turning into regulatory headache, with 40 million Pakistanis reportedly holding crypto accounts opened without formal oversight. As authorities race to regulate booming digital-asset market, Senate has been told that a policy is also being considered to bring crypto users into the tax net.
The rapidly expanding cryptocurrency market comes under spotlight after chairman of the Pakistan Virtual Assets Regulatory Authority revealed that around 40 million Pakistanis already hold crypto accounts, many opened without any regulatory oversight.
Briefing the Senate Standing Committee on Cabinet Secretariat, Bilal Bin Saqib said the scale of crypto adoption highlights the urgent need to bring the sector within a formal regulatory framework. He said Pakistan is examining international models for regulating digital assets, while countries worldwide are increasingly using blockchain technology to issue bonds.
Saqib pointed out that Pakistan is among the world’s third- or fourth-largest freelancer markets, arguing that the country’s young population is already familiar with internet-based financial technologies.
State Bank kept restrictions on digital assets for nearly eight years. Following the lifting of those restrictions, a dedicated regulatory framework has begun taking shape, with authorities now issuing NOCs and processing licensing applications. Virtual Asset Service Providers have been given until September 5 to apply for an NOC or enter the relevant licensing process. Two NOCs have already been issued, according to the briefing.
Senator Sadia Abbasi questioned why millions of cryptocurrency users remain outside Pakistan’s tax net. Saqib said a policy is currently under consideration to bring cryptocurrency into the tax framework, although the Cabinet Secretary stressed that taxation is not the primary objective of regulating crypto.
The official said the broader goal is to bring the rapidly expanding digital-asset ecosystem under state rules and oversight.
Senator Dilawar Khan raised another key concern, asking who would be responsible if a person investing in cryptocurrency suffered a major financial loss. Saqib said the State Bank is part of the regulatory authority, while the Cabinet Secretary drew a distinction between cryptocurrency and the national currency, noting that the state currency carries a government guarantee through the State Bank.
The briefing also revealed that the authority had been allocated Rs800 million, but had spent only 8% of the budget, with the remaining 92% returned. Dilawar Khan said many Pakistani businesspeople, including himself, do not fully understand cryptocurrency.
Saqib responded that the internet is transforming the financial system and that Pakistan’s younger generation is increasingly familiar with digital finance. He added that cryptocurrency purchases conducted through banks would create a traceable transaction record, potentially making oversight easier.
The committee discussion also touched on the religious debate surrounding cryptocurrency. Sadia Abbasi argued that crypto businesses are based largely on speculation and cited Mufti Taqi Usmani’s opposition to cryptocurrency.
PVARA chief said technological developments historically faced similar objections, pointing out that loudspeakers and the printing press were once also considered impermissible.
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