Key Takeaways:
i) Pakistan is shifting its stance on cryptocurrencies, proposing a compliance-focused regulatory framework.
ii) The framework aligns with Financial Action Task Force (FATF) guidelines to combat money laundering and terrorism financing.
iii) The multi-phased rollout of the framework is expected to begin in 2026, pending legislative approval and input from digital asset firms.
iv) The Pakistan Crypto Council is exploring using excess energy to mine Bitcoin as part of a broader effort to turn Pakistan into an international hub for crypto mining.
Islamabad, Pakistan – April 12, 2025 – Pakistan is embracing cryptocurrencies following a regulatory pivot. Regulators in Pakistan have proposed a regulatory framework for digital assets that is compliance-focused, in accordance with rules laid out by the Financial Action Task Force (FATF), the supranational organization that polices finance for money laundering, The Express Tribune reported. According to the report, Pakistan’s Federal Investigation Agency (FIA) introduced the regulatory framework to address terrorism financing, money laundering provisions, and Know Your Customer (KYC) controls enforced by the supranational organization. The proposed framework is subject to legislative approval and input from digital asset firms operating in the country, with an expected multi-phased rollout beginning in 2026.
Pakistan’s government had previously taken a strong anti-crypto stance, culminating in calls for a country-wide ban on digital assets in 2023.
In February 2025, the Finance Ministry of Pakistan signaled a regulatory shift by forming the Pakistan Crypto Council (PCC) to establish clear crypto regulations and attract foreign investment. On April 7, the Council appointed Binance‘s co-founder, Changpeng Zhao, as a crypto advisor to guide the organization’s policy efforts. The Council is exploring using excess energy to mine Bitcoin as part of a broader effort to turn Pakistan into an international hub for crypto mining. This shift comes as Pakistan recognizes the potential of digital assets and seeks to balance technological advancement with national security.
Pakistan’s government had previously taken a strong anti-crypto stance, culminating in calls for a country-wide ban on digital assets in 2023. However, the formation of the PCC signals a change in direction, aiming to embrace innovation while protecting investors and the financial system.
