Pakistan Strategic Bitcoin Reserve Plans Stalled by Ongoing Crypto Ban
Islamabad, May 30 – Pakistan’s efforts to establish a Strategic Bitcoin Reserve have encountered a major setback, as senior officials from the State Bank of Pakistan (SBP) and the Ministry of Finance reaffirmed that cryptocurrency transactions remain illegal in the country. The statements have cast doubt over the government’s digital asset ambitions and raised concerns among lawmakers about conflicting policy signals.
Government Reaffirms Crypto Ban
During a recent session of the National Assembly’s Standing Committee on Finance and Revenue, Finance Secretary Imdadullah Bosal reiterated that cryptocurrencies are not recognized as legal tender in Pakistan. He emphasized that any transaction involving digital assets remains unlawful under the current regulatory framework.
Bosal acknowledged that Prime Minister Shehbaz Sharif has initiated the formation of a Crypto Council to explore potential policies for digital assets. However, he made it clear that no change in the legal status of cryptocurrencies has been made.
“A legal framework for cryptocurrencies can only be developed once the government formally decides to alter their current status,” Bosal stated.
Mixed Messages Spark Confusion
The government’s contradictory approach—exploring crypto-related policies while enforcing a ban—has led to confusion among lawmakers. Mirza Ikhtiar Baig, a member of the finance committee, expressed concern about the risks facing citizens who are encouraged, either directly or indirectly, to invest in an asset class that is officially prohibited.
“These mixed signals can expose people to serious legal and financial consequences,” Baig warned. “There must be clarity and consistency in policy.”
Strategic Bitcoin Reserve Announcement Raises Eyebrows
Despite the legal restrictions, news of a government-linked Strategic Bitcoin Reserve emerged during the Bitcoin Vegas 2025 Conference, where Bilal Bin Saqib, CEO of the Pakistan Crypto Council, unveiled plans for the initiative. He described the reserve as a “strategic” move aligned with global pro-crypto trends, notably inspired by former U.S. President Donald Trump’s support for digital currencies.
Saqib’s announcement gained international attention but quickly became controversial at home, given the prevailing legal stance. While the initiative aims to position Pakistan in the evolving digital economy, it appears to be at odds with existing regulations.
SBP Maintains Firm Opposition
The State Bank of Pakistan remains resolute in its opposition to cryptocurrency. Sohail Jawad, Executive Director at the SBP, confirmed that cryptocurrencies were officially declared illegal in 2024 and that the central bank’s position has not changed.
He added that the Financial Monitoring Unit continues to refer crypto-related cases to law enforcement authorities, highlighting the legal risks associated with engaging in such transactions.
Growing Demand for Policy Clarity
The conflicting positions between exploratory digital asset initiatives and the existing ban have led to mounting pressure on the government to clarify its stance. Lawmakers and financial experts alike are calling for a coherent policy that balances innovation with regulatory oversight.
“The lack of clear guidelines leaves investors vulnerable,” said one committee member. “We need a framework that supports innovation while ensuring legal compliance and investor protection.”
As Pakistan navigates the complex landscape of cryptocurrency regulation, the urgency to establish a consistent and transparent digital asset policy is growing. Lawmakers are pushing for a unified strategy to avoid sending mixed signals and to create a stable environment for both innovation and investment.