The State Bank of Pakistan (SBP) clarified that its 2018 advisory did not deem cryptocurrencies illegal but advised regulated entities to avoid virtual assets (VAs) due to their lack of legal framework.
Pakistan has announced its first government-backed Strategic Bitcoin Reserve, a significant development in its cryptocurrency policy.
The SBP’s 2018 advisory cautioned banks, microfinance institutions, and payment providers against handling VAs to protect consumers from risks without regulations. “The advisory was not because VAs were declared illegal,” the SBP stated. The bank is now collaborating with the Pakistan Crypto Council (PCC), established by the federal government, to develop a regulatory framework for Pakistan cryptocurrency, ensuring investor protection.
Pakistan’s Strategic Bitcoin Reserve
At the Bitcoin 2025 conference in Las Vegas, PCC CEO Bilal Bin Saqib announced the Strategic Bitcoin Reserve, attended by U.S. Vice President JD Vance and Trump family members.
Saqib credited U.S. President Donald Trump’s crypto-friendly policies and diplomatic efforts in easing India-Pakistan tensions as inspiration. The reserve, held in a national Bitcoin wallet, is a long-term sovereign asset, not for speculative trading, emphasising stability, per The Express Tribune.
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The Bitcoin 2025 conference announcement positions Pakistan as a forward-thinking player in digital finance. The forthcoming regulatory framework will provide clarity, fostering innovation while safeguarding consumers. Saqib’s emphasis on non-speculative use underscores a cautious yet progressive approach to Pakistan’s crypto policy.
The clarification and reserve launch signal Pakistan’s commitment to embracing cryptocurrencies responsibly, aligning with global trends.
