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In a landmark development, the State Bank of Pakistan (SBP) has clarified that cryptocurrencies are not banned in the country. The central bank confirmed that it will now allow digital currency transactions under a restricted purchase model, marking a significant shift in its earlier cautious approach.
For years, Pakistan’s crypto landscape remained unclear. A 2018 advisory had discouraged financial institutions from dealing with virtual assets, leading many to assume cryptocurrencies were outright banned. However, SBP officials now say that the advisory was misunderstood and did not amount to a legal ban.
The new policy introduces a “restricted purchase option,” allowing individuals and entities to engage in crypto transactions but only within a tightly regulated framework. Details are still not being finalized, but initial reports suggest that crypto trading will only be possible through government-approved platforms with strict Know Your Customer (KYC) compliance. The goal is to protect users from fraud and ensure financial transparency.
This move comes as part of broader efforts by the Pakistani government to regulate the digital asset space. In March 2025, the Pakistan Crypto Council (PCC) was launched to support blockchain innovation, and in July, the Pakistan Virtual Assets Regulatory Authority (PVARA) was established under the Virtual Assets Ordinance 2025. This authority is now responsible for issuing licenses to virtual asset service providers and monitoring their activities.
Pakistan is also taking bigger Progress in the crypto world. The country plans to launch a Central Bank Digital Currency (CBDC) pilot next year and has announced the creation of a strategic Bitcoin reserve. Additionally, 2,000 megawatts of electricity are being allocated to support crypto mining and AI data centers.
Industry experts have welcomed the SBP’s announcement, calling it a positive step toward modernizing Pakistan’s financial system. While some restrictions will remain in place initially, many believe this paves the way for broader crypto adoption in the near future.
The central bank is expected to release a detailed policy guideline later this year, outlining exactly how and when the public will be able to buy and sell cryptocurrencies legally in Pakistan.
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