By ABDULLAH 
In a landmark move, the State Bank of Pakistan (SBP) has announced that it will legalize cryptocurrency under a regulated framework, marking a major policy shift in how the country approaches digital assets.
The development comes after years of uncertainty, bans, and restrictions that left millions of Pakistani investors operating in a legal grey area. Now, with the proposed Virtual Asset Bill 2025, Pakistan is set to join global economies that have embraced digital financial innovation.
During a briefing to the Senate Finance Committee, SBP Deputy Governor Dr. Inayat Hussain confirmed that:
- The advisory declaring cryptocurrency illegal will be withdrawn.
- A central bank-backed digital rupee will be introduced.
- The Virtual Asset Regulatory Authority (VARA) will oversee licensing, monitoring, and compliance.
- Pakistanis will be able to buy and sell cryptocurrencies legally within a regulated ecosystem.
This means cryptocurrency in Pakistan 2025 is finally legal — but with conditions.
Unlike global platforms where crypto is used freely for payments or cross-border transactions, Pakistan’s framework will limit usage to protect consumers and reduce risks.
- Cryptocurrencies will be transferable nationwide but cannot be used to directly purchase goods, services, or overseas investments.
- The digital rupee, issued by SBP, will be the legal gateway to buy and sell virtual assets.
- Transactions will be capped (initially $10,000 limit per transaction) though some Senators have called for removing this restriction.
Senator Afnanullah Khan revealed that Pakistanis have already invested over $21 billion in crypto, highlighting the urgency of regulation.
Pakistan has a love–hate relationship with crypto.
- In 2018, SBP banned banks from dealing in cryptocurrencies.
- Despite this, millions of Pakistanis turned to platforms like Binance, KuCoin, and OKX, making the country one of the world’s fastest-growing crypto markets.
- By 2021–2023, questions like “Is cryptocurrency legal in Pakistan 2023?” dominated search engines.
This shift in 2025 is partly driven by:
- Global pressure from FATF to regulate money flows.
- The rise of $21 billion in informal crypto holdings by Pakistanis.
- The need to stop cyber fraud, scams, and unmonitored remittances.
The proposed Virtual Asset Bill 2025 introduces a number of checks and balances:
- AML & CTF compliance aligned with FATF standards.
- Data privacy protections for users.
- Independent oversight by a multi-stakeholder board, including SBP, SECP, FBR, FIA, and Digital Pakistan.
- Ban on insider trading or policy leaks by board members.
Barrister Syed Shehroze, who advised the Ministry of Law, emphasized that investor protection is at the heart of the new bill.
While the Senate Finance Committee broadly welcomed the bill, it raised concerns:
- Senator Mohsin Aziz: Opposed the $10,000 transaction cap, saying, “There should be no threshold limit.”
- Senator Afnan Ullah: Called for stronger data privacy laws and accountability of service providers.
- Committee recommendation: Add a National Assembly Member & Senator to the board for transparency.
For the average Pakistani asking, “Which bank allows cryptocurrency in Pakistan?” — the answer will soon be State Bank itself, through the digital rupee.
Key takeaways for users:
- Cryptocurrency is legal in Pakistan in 2025 under regulation.
- Binance and global exchanges may still face restrictions unless they register with Pakistan’s Virtual Asset Authority.
- Investment will be limited to SBP-approved platforms, not peer-to-peer (P2P).
- Direct crypto payments for shopping or foreign investments remain prohibited.
The announcement sparked mixed reactions online.
- On X (Twitter), hashtags like #CryptoPakistan and #SBP trended.
- A Karachi-based trader wrote: “Finally! We don’t need to hide our investments. Crypto is the future.”
- Others expressed doubt: “If SBP controls everything, is it really crypto anymore?”
Q: Is cryptocurrency legal in Pakistan in 2025?
A: Yes, but only under a regulated framework via the Virtual Asset Bill 2025.
Q: Is Binance legal in Pakistan 2025?
A: Binance will need to register with Pakistan’s Virtual Asset Authority. It is not automatically legal yet.
Q: Can I use Bitcoin to buy goods in Pakistan?
A: No. Cryptocurrencies cannot be used for goods, services, or international payments.
Q: What is the Digital Rupee?
A: A central bank-backed digital currency by SBP that will act as the legal medium to buy crypto.
Q: Is crypto still banned in Pakistan today?
A: No, the ban is being lifted, but only regulated use will be allowed.
Pakistan is at a turning point in financial history. By legalizing cryptocurrencies under a controlled ecosystem, the State Bank of Pakistan hopes to balance innovation with investor protection.
While critics worry about over-regulation, optimists see this as the start of a digital economy revolution. With the Virtual Asset Bill 2025, Pakistanis can finally trade crypto legally but under the watchful eye of the regulator.
👉 For millions of Pakistani crypto enthusiasts, this may be the long-awaited green signal.