Pakistan Plans to Establish Crypto Legal Framework to Attract Global Investment

Pakistan is set to develop a regulatory framework for digital assets, a move that would help the country attract international investment and boost the local cryptocurrency system, according to Bilal bin Saqib, CEO of the government-backed Pakistan Crypto Council (PCC), which aims to integrate blockchain and crypto innovations into the national financial system.

The plan is driven by the belief that a Trump return to the White House would spur growth in the cryptocurrency industry.

Saqib, speaking with Bloomberg on Thursday, said that it’s the right time to do that. He asserted that President Trump’s return to the White House serves as a bullish catalyst for the cryptocurrency industry.

“He made history as the first sitting US president to speak at a Bitcoin or crypto conference in New York,” Saqib said.

More Crypto All The Time

The PCC CEO, who also serves as the chief adviser to Pakistan’s finance minister for cryptocurrency management, noted that “Trump is essentially flipping the script” with an executive order forming a crypto working group to accommodate digital assets and creating a US Bitcoin Reserve.

“That means that the largest economy in the world is creating it, like a valuable national asset similar to how it stockpiles gold or oil for security and strength,” Saqib explained.

According to Saqib, if the US adopts a pro-crypto stance, it can influence other countries to do the same. As Trump makes crypto a national priority, countries like Pakistan need to follow suit or face “risk of being left behind.”

Saqib said that Pakistan is ready to embrace the digital future and wants to create a favorable environment for blockchain and cryptocurrency innovation. He wants to create an environment that encourages investment, adoption, and growth.

Saqib added that his vision is to make Pakistan a frontrunner in blockchain-powered finance, thus attracting global investment. According to him, the country presents itself as a low-cost, high-growth market, bolstered by a youthful demographic where 60% of the population is under 30.

In addition to this demographic advantage, Pakistan has a “Web3 native workforce ready to build,” the expert noted.

When asked about whether Pakistan plans to legalize cryptocurrencies, Saqib said he wants to, reiterating the goal of establishing a clear regulatory framework for digital assets in the country.

Opportunities for International Investors

Discussing opportunities for international investors, Saqib said that the focus would be on providing stability, scalability, and a transparent regulatory framework.

He indicated that efforts are underway to establish regulatory sandboxes, designed to expedite the operational processes for crypto startups within a controlled and compliant environment.

According to him, compared to established hubs like Dubai and Singapore, Pakistan has competitive advantages like considerably lower operational costs and a substantial domestic market with GDP exceeding $360 billion.

Saqib also mentioned that Pakistan plans to leverage the regulatory experiences of nations currently being ahead of the curve, including the UAE, Nigeria, Turkey, Singapore, and Hong Kong, through direct engagement and collaborative learning, to refine and implement its own regulatory approach.

On crypto taxation, Saqib stressed that overtaxation could hurt innovation. Pakistan plans to adopt a balanced, pro-growth tax structure to incentivize crypto businesses, ensuring that they are complying with guidelines while attracting internatiation investors.

As of now, cryptocurrency is not fully legalized in Pakistan.

However, there are major developments underway. The State Bank of Pakistan (SBP) has proposed a framework to recognize digital assets, including cryptocurrencies, as legal currency, which could potentially allow digital currencies like Bitcoin to gain legal tender status. The proposal is still pending approval from the federal government and parliament.

Meanwhile, Pakistan aims to become a hub for cryptocurrency in South Asia, which suggests a shift towards embracing blockchain technology and digital currencies.