KARACHI: Pakistan is mulling a “national crypto council” to establish a financial ecosystem in the country that would allow safe investments in digital assets, the Finance Division said on Tuesday.
The statement came after Finance Minister Muhammad Aurangzeb presided over a high-level meeting to discuss global evolution of cryptocurrency and potential impact of digital assets on Pakistan’s economy.
Pakistan’s central bank has declared virtual currencies, including Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin and Pay Diamond, illegal and prohibited their sale, purchase and exchange in trading.
Aurangzeb directed stakeholders to formulate a comprehensive framework for a digital asset ecosystem that ensures security, transparency, regulatory compliance and economic viability.
“To enhance this initiative, the government will consider establishing a National Crypto Council, which will serve as a dedicated advisory body comprising key government representatives, regulatory authorities, and industry experts,” the Finance Division said in a statement.
“This Crypto Council will oversee policy development, address regulatory challenges, and ensure that Pakistan’s digital asset ecosystem evolves in a secure, compliant, and sustainable manner. The Council will also collaborate with friendly countries to develop standardized frameworks for international digital economic engagement.”
Pakistan currently has over 20 million active users in the digital asset market who face significant challenges, including high transaction fees, according to the Finance Division.
The finance minister reaffirmed his commitment to regulating and encouraging this industry by adopting appropriate frameworks, laws and incentives to ensure transparency and facilitate digital business growth.
“Discussions also included the tokenization of key infrastructure and state-owned enterprises (SOEs) assets, allowing for increased liquidity, broader investor participation, and greater efficiency in capital markets,” it said.
“It was noted that various stakeholders, including foreign and domestic investors, have already developed product-ready digital asset solutions that could be explored within a regulatory sandbox.”
Aurangzeb stressed the importance of a well-regulated digital asset framework that aligns Pakistan with international best practices and complies with guidelines of the Financial Action Task Force (FATF), a global dirty money watchdog, according to the statement.
He highlighted the government’s commitment to exploring digital assets and integrating blockchain technology as part of its broader strategy to modernize the financial sector.
“The meeting concluded with a consensus on adopting a cautious yet forward-looking approach, ensuring that future developments in the digital asset space align with national interests, FATF guidelines and global financial standards,” the Finance Division said.
