Pakistan Seeks to Legalize Crypto to Attract Foreign Investment

Pakistan is reportedly taking steps toward establishing a legal framework for cryptocurrency trading, aiming to attract international investment and bring greater clarity to digital asset activities within its expanding crypto market.

In an interview with Bloomberg, Bilal bin Saqib, CEO of the Pakistan Crypto Council, stated that Pakistan is determined to move beyond a passive stance on crypto and focus on attracting foreign investment. He emphasized the country’s unique advantages, describing it as a “low-cost, high-growth market” with a significant proportion of the population under 30. Saqib also highlighted Pakistan’s “web3-native workforce” as an asset poised to support the development of the digital economy.

Crypto trading has gained significant popularity in Pakistan, ranking ninth globally in crypto adoption, according to blockchain analytics firm Chainalysis. The data reveals that the country has an estimated 15 million to 20 million users, with much of the transaction volume occurring through informal peer-to-peer markets.

The government’s stance on cryptocurrency has been unclear, but there are indications of a shift towards a more structured approach. Saqib noted that global developments, especially changes in U.S. policy, could impact Pakistan’s view on cryptocurrency, highlighting that the U.S. prioritizing crypto may compel other countries, including Pakistan, to adapt.

In November 2024, the State Bank of Pakistan proposed a legal framework to officially recognize digital assets, including cryptocurrencies, as legitimate currency. The proposal includes penalties for unauthorized digital currency issuers and aims to integrate digital currency management into the SBP’s responsibilities for overseeing physical and digital currencies.

Notably, Binance has launched a new feature for users in Pakistan, allowing them to convert USDT (Tether) into PKR (Pakistani Rupee) and withdraw funds directly to their bank accounts or mobile wallets. This service simplifies the process of converting cryptocurrency to fiat currency. Users can access this feature by logging into the Binance app, navigating to “Add Funds,” and selecting the “Sell” option.

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.