Pakistan Considers Crypto Council to Legalize Digital Currencies

Pakistan is considering the establishment of a "National Crypto Council" to explore the legalization and adoption of digital currencies in the country. This shift in policy comes after a meeting between Finance Minister Muhammad Aurangzeb and a foreign delegation, which included advisors to US President Donald Trump.

The proposed council would consist of key government representatives, regulatory authorities, and industry experts. Its primary objectives would be to oversee policy development, address regulatory challenges, and ensure the sustainable and secure growth of Pakistan's crypto ecosystem.

Pakistan currently has over 20 million residents involved in cryptocurrency, but they face significant challenges, such as high transaction fees. Aurangzeb has directed stakeholders to create a framework that balances economic viability, regulatory compliance, and protection against financial crimes and illicit activities.

Pakistan's preliminary move to legalize cryptocurrency aligns with global trends. Countries like the United States, Europe, and the United Arab Emirates have taken steps to increase industry regulation, aiming to foster innovation while enhancing consumer protection.

In the past, the Finance Ministry and State Bank of Pakistan opposed the idea of cryptocurrencies. However, Aurangzeb has encouraged authorities to approach the legalization and regulation of crypto with an open mind. In November 2024, the State Bank of Pakistan proposed a package that could pave the way for a central bank digital currency (CBDC) and the buying, selling, and trading of crypto.

The foreign delegation that met with Aurangzeb included Gentry Beach Jr., Nikita Goldsmith, Alex Malkov, and Jerad Finck. The Trump administration has been working to change the tone surrounding crypto in the United States, appointing a crypto czar and exploring the possibility of creating a national digital asset stockpile. President Trump has also launched his own memecoin.