SBP Makes It Clear How Virtual Assets Are Treated by Law
Cryptocurrencies have often been misunderstood in Pakistan, but the central bank has now set the record straight. It never declared these digital currencies illegal. Instead, in 2018, it warned financial institutions to avoid transactions involving Virtual assets because there were no formal laws or guidelines regulating them yet. This update was shared to clear up any confusion about whether using cryptocurrencies is allowed under Pakistani law.
There has been some misunderstanding about virtual assets and their status in Pakistan. To clarify, the State Bank of Pakistan (SBP) informed that in 2018, it advised all financial institutions under its supervision, including banks, microfinance institutions, payment providers, and exchange companies, to avoid dealing with virtual assets. This guidance was given because there were no clear laws or regulations covering these assets at that time, and not because they were declared illegal. This explanation aims to clear up any confusion about how Virtual assets are viewed legally in the country.
Back in 2018, the central bank shared a warning to make sure that the banks and financial companies it watches over, as well as their clients, stayed safe. This was because there weren’t any official laws or guidelines about Virtual assets in Pakistan at that time.
To address the growing use of digital currencies, the State Bank and Finance Division are teaming up with the Pakistan Crypto Council, a body set up by the government. Their goal is to create proper laws and regulations that will govern Virtual assets and ensure they are managed safely within Pakistan. This partnership marks an important step toward clear guidelines in the country’s digital financial space.
Clear and effective rules are essential for the future of Virtual assets. We understand that establishing such laws will provide the necessary guidance and protection, making sure that both consumers and investors are secure in their dealings. This step is important to build trust and confidence in the digital asset market.
Virtual Assets and Pakistan’s First Ever Bitcoin Fund
In a major development for digital currency in the country, Bilal Bin Saqib, the CEO of the Pakistan Crypto Council, announced on Thursday the launch of Pakistan’s very first government-supported Bitcoin reserve. This move aims to strengthen the country’s position in the evolving world of cryptocurrencies.
In an important moment for Pakistan’s cryptocurrency sector, Bilal Bin Saqib delivered a key announcement at the Bitcoin 2025 conference in Las Vegas. Serving as the Prime Minister’s special assistant on blockchain and crypto, he used the platform to share significant updates about the country’s digital currency plans.
Several well-known figures, including JD Vance, the Vice President of the U.S., Eric Trump, and Donald Trump Jr., were present at the event. Bilal Bin Saqib showed his gratitude to former President Donald Trump for his role in calming the situation between India and Pakistan and encouraging the use of cryptocurrencies. He also mentioned that Pakistan’s recent actions were inspired by how the U.S. has handled similar policies.
Looking ahead, Pakistan intends to keep its Bitcoin reserves as a secure and lasting part of its national wealth. Saqib explained that these digital assets will be stored in a government-controlled wallet and won’t be bought or sold to chase short-term gains. This approach ensures that the reserves remain stable and protected from the usual ups and downs of Bitcoin’s market value.
