Cryptocurrency has always sat in a gray area in Pakistan, neither fully legal nor explicitly banned. However, 2025 has brought a major shift in the country’s approach. With evolving global trends and pressure from financial watchdogs like FATF, Pakistan is now moving towards regulated adoption of crypto assets and virtual currencies.
So, is crypto trading legal in Pakistan today? What’s changed in 2025? And what should investors, traders, and startups know moving forward?
Let’s break it down.
Is Crypto Trading Legal in Pakistan Right Now?
As of July 2025, crypto trading is not fully legal or licensed in Pakistan. The State Bank of Pakistan (SBP) and the Ministry of Finance continue to prohibit financial institutions from offering crypto services. This means:
Banks and fintech platforms cannot provide crypto services.
Crypto transactions via official channels (like Pakistani bank accounts or payment gateways) remain blocked.
Individuals trading informally via global exchanges are operating in a legal gray area.
Big Regulatory Shift: What’s Happening in 2025?
Despite the current restrictions, Pakistan is laying the groundwork for a legal and regulated crypto ecosystem.
Key Developments:
Date
Development
May–June 2025
Creation of Pakistan Crypto Council (PCC) to draft a national crypto policy
July 8, 2025
Introduction of Virtual Assets Ordinance, 2025
July 2025
Formation of Pakistan Virtual Assets Regulatory Authority (PVARA)
What Is the Virtual Assets Ordinance, 2025?
This presidential ordinance marks Pakistan’s first formal legal step toward regulating cryptocurrencies and digital assets.
Key Highlights:
PVARA (Pakistan Virtual Assets Regulatory Authority) established to regulate, license, and oversee virtual asset businesses.
Provisions cover:
Cryptocurrency exchanges
Virtual asset service providers (VASPs)
Digital wallets and blockchain-based platforms
Valid for 120 days unless passed as an Act of Parliament.
Ensures alignment with global standards, particularly FATF and G20 guidelines.
This means Pakistan is no longer ignoring crypto, it’s building the legal scaffolding for it.
Will Crypto Trading Become Legal Soon?
Yes, but not immediately. While the legal framework is being prepared, trading will only become fully legal when:
PVARA licenses exchanges and service providers
Parliament passes the ordinance into law
Banks and financial institutions receive regulatory permissions
Until then, individuals trading crypto do so at their own risk, with no consumer protection and potential legal scrutiny.
Why Is Pakistan Taking This Step?
Several factors are pushing Pakistan towards crypto regulation:
FATF pressure: Global anti-money laundering watchdogs require regulation of virtual assets.
Innovation & investment: Pakistan wants to become a regional tech and blockchain hub.
Taxation opportunity: Legalization allows for collection of taxes from crypto-related income.
CBDC goals: The SBP plans to launch a central bank digital currency (CBDC) pilot in 2025–2026.
What Role Will PVARA Play?
PVARA is set to become the SECP of the crypto world in Pakistan. Its duties will include:
Issuing licenses to crypto exchanges and brokers
Enforcing KYC/AML rules
Monitoring trading activity and ensuring investor safety
Developing a sandbox for innovation, where startups can test ideas under supervision
Working with Shariah boards to create Islamic finance-compliant crypto frameworks
What Should Traders and Entrepreneurs Do?
Until PVARA’s licensing process begins:
Avoid using Pakistani banks or cards for crypto trading
Stay informed through official updates from SBP, SECP, or PVARA
If you’re involved in crypto, maintain transparent records and understand potential tax implications
For startups: prepare your compliance frameworks now to be ready when licensing opens
Watch for CBDC developments — this will influence payment innovation across the board
Final Thoughts: The Future Is Regulated
Pakistan is not banning crypto, it is regulating it.
Crypto is on the cusp of legality and legitimacy in the country. With the Virtual Assets Ordinance, the formation of PVARA, and the upcoming CBDC pilot, Pakistan is poised to become a structured part of the global digital economy.
For now, though, wait for licenses before you scale. The groundwork is being laid, and those who stay informed and prepared will benefit the most.
Experienced Financial Analyst with excellent Business, Finance, Marketing and IT skills. A motivated entrepreneur who likes to do challenging tasks. Action-oriented, results and opportunity driven having exceptional problem solving skills with strong ability to communicate effectively.
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