Pakistan's Crypto Market Grows to 40 Million Users Without Regulation

Pakistan's cryptocurrency market is facing regulatory challenges as 40 million Pakistanis hold crypto accounts opened without formal oversight. The Senate Standing Committee on Cabinet Secretariat was briefed by Bilal Bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), who highlighted the need for a regulatory framework to bring the sector under state control.

Saqib stated that around 40 million Pakistanis already hold crypto accounts, many opened without any regulatory oversight. He noted that Pakistan is examining international models for regulating digital assets and that countries worldwide are increasingly using blockchain technology to issue bonds.

The State Bank of Pakistan had restrictions on digital assets for nearly eight years, but after lifting those restrictions, a dedicated regulatory framework has begun taking shape. Virtual Asset Service Providers have been given until September 5 to apply for an NOC or enter the licensing process, with two NOCs already issued, according to Saqib.

The committee discussion also touched on taxation and regulation of crypto assets, with Senator Sadia Abbasi questioning why millions of cryptocurrency users remain outside Pakistan's tax net. A policy is currently under consideration to bring cryptocurrency into the tax framework, although the Cabinet Secretary stressed that taxation is not the primary objective of regulating crypto.