Overview of How crypto world made inroads in Pakistan
This NPR Indicator episode examines Pakistan’s rapid shift from banning cryptocurrency to actively trying to regulate and grow the sector. The discussion explores why the government reversed course, how crypto could fit into Pakistan’s economy, and the major obstacles ahead — especially concerns about financial crime, regulation, and whether crypto is permissible under Islamic law.
What changed in Pakistan
- Pakistan banned financial institutions from dealing in crypto in 2018 over fears of:
- money laundering
- terror financing
- fraud and market manipulation
- In 2025, the government reversed course and began building a formal regulatory structure:
- created an advisory body to oversee crypto
- established a crypto regulator to screen and license approved companies
- The country is now moving from prohibition to controlled legalization.
Why the government is pushing crypto
- Analysts believe Pakistan’s crypto pivot is partly tied to courting the Trump administration, especially as Trump became publicly pro-crypto.
- Officials also see crypto as a way to:
- bring an existing underground market into the open
- improve oversight of activity already happening
- attract investment and modernize parts of the financial system
- Pakistan is reportedly ranked third globally in crypto adoption, according to the interviewees in the episode.
Potential economic benefits
Supporters argue crypto could help:
- freelancers receiving payments from abroad
- migrant workers sending remittances home
- reduce fees and friction in cross-border transfers
- keep people from losing money during traditional money transfers
The core argument is that digital assets are already being used in Pakistan, so formal regulation could make the market safer and more transparent.
Regulatory and financial risks
The episode emphasizes that regulation is necessary because crypto has a history of abuse:
- early crypto markets were heavily used by criminals
- governments worry about scams, theft, and price manipulation
- rushed regulation can backfire, as seen in other places like the Bahamas and the FTX collapse
The broader point: crypto may offer innovation, but only if the rules are strong enough to prevent abuse.
The Islamic finance debate
A major hurdle in Pakistan is whether crypto is Islamically permissible.
Main concerns from scholars
- Some scholars argue cryptocurrencies like Bitcoin lack intrinsic value
- Islamic finance generally prefers assets that are:
- tangible
- backed by real-world value
- not based on excessive speculation
- Concerns also involve:
- speculation
- interest-like behavior
- bubble risk and financial instability
Possible middle ground
- Digitally backed assets tied to gold or real-world currencies may be more acceptable
- But there is still no consensus, meaning regulation alone may not win broad public acceptance
Pakistan’s crypto leadership and foreign ties
- The public face of Pakistan’s crypto push is Bilal bin Saqib
- became a chief advisor to the finance minister
- later became founding CEO of the Pakistan Crypto Council
- Pakistan signed an agreement with a firm linked to World Liberty Financial, a crypto platform associated with the Trump family
- The episode notes a broader political and business web connecting Pakistan’s crypto strategy to U.S. politics and prominent crypto figures
Which companies may enter the market
- Pakistan has started accepting applications for crypto licenses
- Two firms reportedly received initial clearance to apply:
- Binance
- HTX
- Changpeng Zhao (CZ), the founder of Binance, has also been involved in advising Pakistan’s crypto efforts
- The episode notes CZ’s own legal troubles in the U.S. and his later presidential pardon by Trump
What Pakistan is doing next
Pakistan is moving quickly and has already:
- opened the licensing process for crypto platforms
- begun allocating electricity for Bitcoin mining
- floated the idea of a national Bitcoin reserve
Main takeaway
Pakistan’s crypto push is less about whether digital assets exist and more about how the state chooses to manage a market that is already active. The government sees regulation as a way to gain control, attract investment, and modernize finance — but it still faces serious resistance from regulators, religious authorities, and skeptics who worry the sector could amplify financial risk rather than reduce it.