Cryptocurrency Regulation Framework in Pakistan

Question

The State Bank of Pakistan and FBR have issued conflicting statements about cryptocurrency regulations. What is the current legal status of crypto trading and mining in Pakistan? Are there any upcoming regulations that might clarify this gray area?

Legal Expert · Accepted Answer

The legal status of cryptocurrency in Pakistan remains ambiguous. As of now, the State Bank of Pakistan's 2018 circular prohibiting financial institutions from facilitating crypto transactions is still in effect. However, there's no explicit law making individual ownership or trading illegal - it exists in a regulatory gray area.

Legal Expert · Answer

The Federal Board of Revenue (FBR) has started showing interest in taxing crypto gains, which indirectly acknowledges their existence. Recent statements suggest they're working on including cryptocurrency in tax return forms. This creates a contradictory situation where one government body restricts it while another seeks to tax it.

Legal Expert · Answer

There are rumors that SECP is drafting comprehensive crypto regulations that may be announced later this year. The recent meetings between Pakistani officials and international crypto exchanges suggest a more permissive approach might be coming. Until then, participants should document all transactions carefully for potential future tax compliance, while being aware that banking channels remain officially closed to crypto activity.

Cryptocurrency Regulation Framework in Pakistan

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