Pakistan Considers Establishing National Crypto Council to Regulate Digital Assets

Islamabad – The federal government is considering the establishment of a National Crypto Council to oversee digital assets and blockchain initiatives in Pakistan, Federal Minister for Finance and Revenue Muhammad Aurangzeb announced during a high-level meeting on digital assets on Tuesday. The proposed council will serve as a dedicated advisory body comprising key government representatives, regulatory authorities, and industry experts. Its primary objectives will include policy development, addressing regulatory challenges, and ensuring the evolution of Pakistan’s digital asset ecosystem in a secure, compliant, and sustainable manner. Additionally, the council will collaborate with international stakeholders to develop standardized frameworks for digital economic engagement. Minister Aurangzeb directed relevant stakeholders to draft a comprehensive framework that ensures security, transparency, regulatory compliance, and economic viability while safeguarding against financial crimes and illicit activities. He stressed the importance of adopting a balanced approach that fostersinnovation and investment in digitalassets while maintaining strict regulatory oversight aligned with international standards. During the meeting, participants discussed the global evolution of cryptocurrency, its rising adoption, and the regulatory frameworks being implemented internationally, particularly in line with U.S. government policies. Key topics included financial security, risk mitigation, and the potential impact ofdigital assets on Pakistan’s economy. The Finance Minister underscored the necessity of a well-regulated digital asset framework that aligns with international best practices and complies with Financial Action Task Force (FATF) guidelines. He reiterated the government’s commitment to exploring digital assets and integrating blockchain technology as part of a broader strategy to modernize the financial sector. Discussions also touched upon the tokenization of key infrastructure and state-owned enterprises (SOEs), aimed at increasing liquidity, broadening investor participation, and enhancing efficiency in capital markets. It was noted that both foreign and domestic investors have already developed product-readydigital asset solutionsthat could be explored within a regulatory sandbox. With over 20million active users in Pakistan’s digitalasset market, industry participants face significant challenges, including high transaction fees. Minister Aurangzeb reaffirmed his commitment to regulating and supporting the sector by developing appropriate frameworks, laws, and incentives that promote transparency and facilitate digital business growth. The meeting concluded with a consensus on adopting a cautious yet forward-looking approach, ensuring that future developments in the digital asset space align with national interests, FATF guidelines, and global financial standards. Among the attendees were foreign delegates, including President Trump’s advisors for digital assets. Also present were Minister of State for IT & Telecom Shaza Fatima Khawaja, the Governor of theState Bank of Pakistan, the Secretary of Finance, and the Secretary of IT & Telecom.