KARACHI, April 28, 2026 — Pakistan is moving closer to formalizing cryptocurrency trading as exchange companies have approached regulators to obtain licenses, signaling a potential shift toward mainstream adoption of digital assets in the country.
Officials from the Exchange Companies Association of Pakistan (ECAP), led by Chairman Malik Muhammad Bustan, held talks with Bilal bin Saqib, head of the Pakistan Virtual Assets Regulatory Authority (PVARA) and CEO of the Pakistan Crypto Council, to discuss a regulatory framework for crypto trading.
The meeting comes amid increasing interest in digital currencies in Pakistan, where industry estimates suggest around 40 million people are already trading cryptocurrencies through informal or offshore channels.
Participants at the meeting welcomed the establishment of the Crypto Council, describing it as a significant step toward regulating the sector. Bustan said the initiative would help bring transparency and reduce transaction costs for millions of users.
“Digital finance is the future, and Pakistan is positioning itself to benefit from this transformation,” Bustan said, adding that formal licensing could cut trading costs from the current 5–6% to around 1%.
The State Bank of Pakistan and the Securities and Exchange Commission of Pakistan (SECP) have advised prospective market participants to obtain a no-objection certificate (NOC) from the Crypto Council and open designated bank accounts, indicating early-stage regulatory oversight.
Bilal bin Saqib said authorities are working on a phased approach. In the initial phase, companies will be allowed to enter the market after securing regulatory approvals, while a broader licensing regime for exchange companies is expected in the next stage.
A key focus of the initiative is boosting remittance inflows, which currently stand at about $38 billion annually. Officials aim to increase this to $50 billion by leveraging blockchain-based solutions.
Bustan highlighted the potential introduction of stablecoins linked to the Pakistani rupee and U.S. dollar, which could enable overseas Pakistanis to transfer funds within minutes instead of waiting several days under traditional banking channels.
Regulators, including the central bank and SECP, are also working to ensure compliance with international standards such as Financial Action Task Force (FATF) guidelines and customer due diligence requirements, aiming to safeguard financial integrity and avoid scrutiny.
Analysts say a clear regulatory framework could attract investment, curb illicit flows, and integrate Pakistan’s growing crypto market into the formal economy.
While challenges remain, including regulatory risks and market volatility, the latest developments suggest Pakistan is preparing to embrace digital finance in a controlled and compliant manner, potentially reshaping its financial landscape.