The future of cryptocurrency in Pakistan is undergoing a significant transformation in 2025, with the government taking proactive steps to regulate and integrate digital assets into the economy.
Government Initiatives and Regulatory Developments
In March 2025, Pakistan established the Pakistan Crypto Council (PCC), a government-backed body tasked with developing regulations and promoting blockchain technology and digital assets. The council is led by Finance Minister Muhammad Aurangzeb, with Bilal Bin Saqib serving as CEO and Binance co-founder Changpeng Zhao appointed as a strategic adviser. The PCC aims to integrate blockchain technology into Pakistan's financial landscape and foster innovation in the fintech sector.
A key legislative measure is the Virtual Assets Bill 2025, introduced by Senator Dr. Afnan Ullah Khan. This bill seeks to regulate virtual assets, including cryptocurrencies and blockchain-based technologies, and proposes the introduction of a Digital Rupee backed by the Pakistani Rupee (PKR). The bill outlines the establishment of Virtual Asset Zones, areas designated for the trading and management of cryptocurrencies, and the creation of a National Virtual Assets Regulatory Commission to oversee the sector.
Leveraging Surplus Energy for Crypto Mining
Pakistan plans to utilize its surplus electricity by supporting Bitcoin mining and AI data centers. The country faces high electricity tariffs and overcapacity in its energy sector, exacerbated by the increased adoption of solar energy. The government is in talks with several mining firms to establish mining centers in regions with excess power availability. This initiative aims to boost innovation through regulatory sandboxes and upskill Pakistan's youth in blockchain and AI, positioning the country as a global tech talent hub.
Digital Rupee and Financial Inclusion
The proposed Digital Rupee aims to extend financial services to the unbanked and underbanked populations in Pakistan, addressing a significant challenge in a country where 79% of its 231 million people lack access to traditional banking. CBDCs can significantly reduce the expenses associated with managing physical currency, which account for over 1% of GDP in Pakistan. Additionally, the transparency of digital transactions can combat financial crimes effectively.
Economic Implications and Investor Confidence
The regulatory framework aims to provide legal clarity for trading and managing virtual assets, fostering investor confidence and attracting foreign investment. The establishment of Virtual Asset Zones with tax incentives and the allocation of revenue from virtual asset activities to local infrastructure and blockchain education programs are expected to stimulate economic growth and innovation.
Cryptocurrency Market Snapshot
As of April 26, 2025, the cryptocurrency market showed notable movement. Bitcoin (BTC) traded around $94,604, up roughly 0.01% from the previous close, with an intraday range between $93,629 and $95,617. Ethereum (ETH) traded near $1,803.48, up about 0.02%, ranging between $1,770.27 and $1,820.32 intraday. Stablecoins such as Polygon-bridged USDT held steady around $1.00.
Outlook
Pakistan's proactive approach to regulating cryptocurrencies and integrating blockchain technology positions the country to become a significant player in the global digital economy. The establishment of the Pakistan Crypto Council, the introduction of the Virtual Assets Bill 2025, and the strategic use of surplus energy for crypto mining are steps toward fostering innovation and attracting investment. The proposed Digital Rupee aims to enhance financial inclusion and streamline monetary policies. If these initiatives are successfully implemented, Pakistan could emerge as a hub for blockchain technology and digital finance in the region.
Is Cryptocurrency Halal or Haram?
The question of whether cryptocurrency is halal (permissible) or haram (forbidden) in Islam is still debated among Islamic scholars, and opinions vary depending on how cryptocurrencies are used and understood.
Arguments That Cryptocurrency Is Halal
- Medium of Exchange: Some scholars argue that since cryptocurrencies function as a medium of exchange (like fiat money), they are permissible.
- Store of Value: Like gold or silver, cryptocurrencies can store value, making them a legitimate asset under Islamic finance.
- Decentralization and Transparency: Blockchain's transparency and the absence of interest-based (riba) systems can align with Islamic ethical principles.
Arguments That Cryptocurrency Is Haram
- High Volatility (Gharar): Islamic finance prohibits excessive uncertainty. The extreme price fluctuations in crypto may be considered gharar (excessive risk or ambiguity).
- Speculative Trading: Trading crypto purely for speculation or gambling (maysir) may be seen as haram.
- Lack of Intrinsic Value: Some scholars argue that crypto lacks tangible backing, making it not a real asset (mal), and thus not permissible.
Neutral / Middle Ground
Some scholars and Islamic financial institutions, such as Malaysia's Shariah Advisory Council and scholars in the UAE, take a middle position: cryptocurrency itself is not inherently haram, but the way it is used determines its permissibility. Buying, holding, or using crypto for halal transactions is generally seen as permissible, while using crypto for illegal activities, high-risk trading, or gambling-like behavior is not.
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