Pakistan Establishes National Crypto Council to Boost Digital Economy

Pakistan is set to establish a National Crypto Council, a significant move aimed at regulating digital assets, attracting investment, and boosting its digital economy with internationally recognized policies. The initiative, announced by Finance Minister Muhammad Aurangzeb, seeks to create an international-standard framework for digital asset regulation and policy development.

The decision to form the council was made during a high-level meeting on digital assets, attended by U.S. digital asset advisors, State Bank Governor Jameel Ahmed, and IT Minister Khawaja Shaza Fatima. The meeting discussed global cryptocurrency trends, financial security risks, and the economic prospects of digital assets for Pakistan. The future council will comprise representatives from the government, regulatory bodies, and industry professionals, focusing on policy development, resolving regulatory issues, and building cooperative frameworks with international partners for digital economic operations.

Finance Minister Aurangzeb has instructed the State Bank of Pakistan to study cryptocurrency implementation, acknowledging the rapid expansion of the global crypto market, which now exceeds trillions of dollars in total value. Pakistan aims to follow the example of countries like Bhutan and others that have made progress in this area. The absence of specific legal infrastructure has been a barrier to Pakistan's advancement in the cryptocurrency market.

Aurangzeb emphasized the need for Pakistan to develop a digital asset framework that complies with international standards and the requirements of the Financial Action Task Force (FATF). The government expressed interest in blockchain technology and its potential to transform key infrastructure and state-owned assets through tokenization. The establishment of such regulations could enhance market liquidity, attracting additional investors to Pakistan's capital markets.

The digital asset market in Pakistan currently hosts over 20 million active users, but many face high transaction fees and uncertainty due to unclear regulations. The establishment of the National Crypto Council aims to address these issues, creating the necessary conditions for digital economy advancement through innovation and investment in Pakistan. This initiative reflects Pakistan's commitment to embracing modern financial technologies and becoming a competitive player in the global digital economy.