ISLAMABAD – Pakistan is accelerating its journey into the world of cryptocurrencies and digital assets, even as questions linger over regulatory clarity, institutional readiness, and the potential risks posed to its financial system.
- In recent months, the government has made ambitious moves to promote crypto adoption, including the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) and the Pakistan Crypto Council (PCC). However, the country’s crypto policy framework remains a work in progress, raising concerns about accountability and effective oversight. The position of chief crypto adviser, once heavily promoted, has been quietly removed, leaving ambiguity about who holds ultimate responsibility for guiding the sector.
- PVARA has taken initial steps such as launching a Crypto Grievance Cell and issuing anti-money-laundering guidelines. Yet financial experts warn that Pakistan’s legal and financial infrastructure is still fragile. Past cautions from the State Bank of Pakistan about the risks of unregulated cryptocurrencies — particularly in terms of money laundering and financial stability — continue to resonate strongly.
- Observers note that while blockchain innovation, remittance efficiency, and stablecoin development hold great potential, these benefits could be offset by systemic risks if licensing procedures, oversight mechanisms, and clear legal frameworks are not firmly in place. Without these safeguards, market enthusiasm could quickly turn into volatility and uncertainty.
As Pakistan forges ahead with crypto regulation and adoption, the big question remains: is the country prepared for the rapid pace of change? Will regulators catch up with market ambitions before the risks outweigh the benefits? The coming months could determine whether Pakistan emerges as a regional leader in digital finance or falls prey to the pitfalls of rushed innovation.
This story has been reported by PakTribune. All rights reserved.