Pakistan is moving towards establishing a clear regulatory framework for cryptocurrency trading as it seeks to attract international investment and accelerate economic growth. This shift marks a departure from previous cautious policies, positioning the country as a key player in the global digital asset space. The country has established a national crypto council to oversee the regulation and integration of blockchain technology and digital assets into its financial system. The government has recently intensified efforts to regulate the sector, appointing Bilal bin Saqib as chief advisor to the finance minister for digital assets. He is also the CEO of the National Crypto Council. The move is part of a broader initiative to capitalise on the country’s growing interest in blockchain technology and decentralised finance. With Pakistan ranking ninth globally in cryptocurrency adoption, authorities aim to integrate digital assets into the financial system while addressing concerns raised by the central bank. The initiative is expected to enhance economic prospects by providing a regulated environment that encourages investment and safeguards market participants. Crypto adoption drives legalisation Pakistan’s push for regulation is driven by its rapidly expanding crypto user base. An estimated 15 million to 20 million Pakistanis are actively trading digital assets, reflecting strong engagement despite previous regulatory uncertainty. A young, tech-savvy population is playing a pivotal role in this shift, with 60% of the country’s citizens under 30. The surge in adoption comes despite the State Bank of Pakistan’s repeated warnings about digital asset risks. However, the government’s latest initiatives indicate a move towards embracing digital finance rather than restricting it. The newly formed National Crypto Council will oversee the sector, ensuring compliance with evolving regulatory standards while fostering innovation. The council’s creation highlights Pakistan’s commitment to balancing investor protection with industry growth. By offering a structured framework, the government aims to prevent illicit activities while encouraging businesses to build within a secure and regulated ecosystem. Global factors influence Pakistan Pakistan’s decision to formalise cryptocurrency regulations aligns with a global shift toward digital finance. Under President Donald Trump, the US has signaled a pro-crypto stance , driving increased institutional adoption worldwide. This policy shift has influenced countries like Pakistan to reassess their regulatory approach and integrate digital assets into their financial systems. According to Bilal bin Saqib , the US prioritising crypto has set a precedent that nations must follow to remain competitive. By embracing digital assets, Pakistan positions itself as an emerging hub for blockchain innovation, particularly in decentralised finance (DeFi) and Web3 applications. Regulatory clarity could also enhance Pakistan’s appeal to foreign investors seeking emerging markets with high growth potential. With a low-cost but highly skilled workforce, the country is poised to become a significant player in the global crypto industry. Pational Crypto Council takes charge The establishment of the Pational Crypto Council marks a pivotal moment in Pakistan’s digital finance landscape. Tasked with overseeing the industry, the council aims to introduce regulations that align with international financial standards while addressing domestic economic needs. The council will focus on ensuring compliance, preventing fraud, and encouraging responsible innovation within the crypto space. By doing so, Pakistan aims to create an environment that fosters technological advancement while mitigating financial risks associated with unregulated digital assets. This initiative reflects Pakistan’s long-term economic vision, integrating digital finance into its broader strategy for growth. With regulatory measures now taking shape, the country is positioning itself as a leader in the South Asian digital economy, ready to capitalise on the increasing global demand for blockchain-based solutions. The post Pakistan moves to regulate crypto trading, targeting global investors appeared first on Invezz
