Pakistan's Crypto Market Attracts Global Exchanges Amid Regulatory Focus

Pakistan's efforts to regulate cryptocurrencies have attracted interest from global exchanges, but industry experts warn that the country should focus on real-world asset-backed tokens rather than treating crypto as a hedge against economic risks.

According to Arif Habib Dolmen REIT Management Limited CEO Muhammad Ejaz, integration of technologies into business models is necessary and Pakistan's efforts to regulate cryptocurrencies are a step in the right direction. However, he cautioned that designing an effective hedge against inflation and currency depreciation is not a trivial matter, as cryptocurrencies are more volatile than traditional assets.

Ejaz suggested that Pakistan should focus on digital assets backed by real-world assets, which could be particularly relevant to the country's young, digitally connected population. He noted that about 70 major global exchanges are seeking licenses to operate in Pakistan, with an estimated $250 billion crypto market size.

The Virtual Assets Regulatory Authority (PVARA) has set a deadline for existing service providers to apply for no-objection certificates, warning that those failing to do so would have to cease operations. The State Bank of Pakistan (SBP) has also allowed banks to open accounts for PVARA-licensed providers.

Industry figures show that Pakistan consistently ranks among the top global markets for digital asset adoption, backed by a large youth demographic and rapid smartphone penetration. Bitget, a universal exchange offering trading in cryptocurrencies and traditional financial markets, noted that retail investors are increasingly seeking inflation hedges and global diversification.