Pakistan Embraces Crypto Regulation in 2025 with Historic Framework

Pakistan has shifted from crypto skepticism to proactive regulation, marking a pivotal moment in its digital finance evolution. The government unveiled a comprehensive legal framework designed to foster blockchain innovation, attract foreign investment, and promote digital inclusion. Key institutions like the Pakistan Crypto Council (PCC) and Pakistan Digital Assets Authority (PDAA) underscore the nation’s commitment to a regulated crypto ecosystem.

On June 2, 2025, Pakistan began drafting a detailed regulatory framework for digital assets, involving a technical committee with representatives from the Finance Ministry, State Bank of Pakistan (SBP), SECP, and IT and Law ministries. The SBP clarified that while cryptocurrencies were never outright banned, they previously operated outside legal structures.

The PDAA, approved on May 21, 2025, aims to ensure innovation and economic inclusion while adhering to FATF compliance standards. Earlier in May, an EFF program review highlighted the importance of AML/CFT measures in crypto, signaling Pakistan’s alignment with global financial integrity norms.