A Historic Turn in 2025
Pakistan Embraces Crypto: In March 2025, Pakistan took a bold step into the future by legalizing cryptocurrencies through the Virtual Assets Bill 2025. This decision marked a dramatic shift from the country’s earlier stance, where digital currencies were once banned and even declared “never to be legalized.” The move reflects a growing recognition of cryptocurrency’s potential to reshape Pakistan’s economy, especially for its young, tech-savvy population.
From Ban to Breakthrough
For years, Pakistan’s relationship with cryptocurrencies was tense:
- In 2018, the State Bank of Pakistan banned banks from dealing with crypto exchanges, fearing risks like fraud and illegal activities.
- By 2023, a government minister doubled down, insisting cryptocurrencies would stay outlawed.
But the tide began turning in late 2024. Under new leadership, including Finance Minister Muhammad Aurangzeb, the government proposed changes to allow digital assets. This led to the Virtual Assets Bill, introduced in early 2025 and passed by March. The law not only legalized cryptocurrencies but also created rules to manage them safely.
Key Features of the Virtual Assets Bill
At the heart of the bill:
- Digital Rupee: A government-backed digital currency pegged to Pakistan’s regular rupee, managed by the central bank.
- Virtual Asset Zones: Special areas for trading cryptocurrencies with oversight to protect investors.
- National Virtual Assets Regulatory Commission: A new body to oversee the ecosystem, issue licenses, and enforce rules against money laundering.
Why It Matters
The legalization has sparked excitement across the nation. Many believe it could:
- Attract foreign investment
- Position Pakistan as a regional leader in blockchain technology
- Bring millions of unbanked citizens into the formal economy
- Leverage blockchain for tasks like land record management and charity donations
Young people, who make up over 60% of the population, are seen as key drivers of this change.
Risks and Roadblocks
Despite the optimism, challenges remain:
Risk of illegal use if regulations aren’t enforced strictly.
Economic instability may slow public trust and adoption.
Skepticism around integrating new financial systems in uncertain times.
A Global Perspective
Pakistan’s move mirrors a broader global shift:
- El Salvador fully embraced Bitcoin
- China banned it altogether
- Pakistan chose a middle path, regulating innovation while managing risks
This balance may help Pakistan avoid penalties from global financial watchdogs.
Final Thoughts
Pakistan’s crypto journey is just beginning. While hurdles like inflation and security risks remain, this bold pivot offers hope. By embracing change, Pakistan aims to empower its youth, attract global partners, and write a new story for its financial future, one where technology and tradition coexist.
This article is not financial advice. Please do your own research (DYOR). You can start at blog.millionero.com. When you’re ready, come trade spot and perpetual futures on Millionero.