The winds of change might be blowing through Pakistan’s financial sector, and cryptocurrency is increasingly becoming a topic that can no longer be ignored.
At The First Pakistan Banking Summit 2025 in Karachi, Finance Minister Muhammad Aurangzeb delivered a powerful message to the nation’s banking leaders.
it’s time to get crypto-ready.
As captured in a widely circulated video and reported by news outlets like Express News PK, Aurangzeb’s address signals a potential shift in Pakistan’s approach to digital currencies.
While Pakistan has navigated a complex relationship with crypto, often mirroring global concerns around regulation and risk, Aurangzeb’s speech was a clear call to action.
He didn’t just acknowledge the existence of crypto; he actively urged the State Bank of Pakistan (SBP) and the broader banking community to embrace an “open mind” towards it.
Watch Finance Minister Aurangzeb’s Keynote Address:
Crypto is Already Here – In the Informal Market
Aurangzeb’s statements weren’t made in a vacuum.
He grounded his call for crypto readiness in a stark reality, as heard in his address:
“The reality is that crypto is already in vogue in the informal market, and the numbers are what they are.”
He acknowledged that even if the estimated figures are inflated, the sheer volume of crypto activity happening outside regulated channels is significant enough to warrant attention.
This isn’t just about acknowledging a trend.
it’s a pragmatic recognition that ignoring crypto won’t make it disappear.
Instead, it pushes activity underground, making it harder to monitor, tax, and protect consumers.
Regulation: The Key to Moving Forward – And Pakistan’s First Steps
The Finance Minister didn’t advocate for a free-for-all crypto environment.
Instead, he emphasized the urgent need to develop a robust regulatory framework.
He stressed the importance of being “ahead of the cycle in terms of the regulatory regime” for both cryptocurrencies and artificial intelligence (AI).
This proactive stance suggests a move away from potential outright bans or suppression, towards a more considered approach that seeks to channel crypto’s potential within a regulated and controlled environment.
Interestingly, and perhaps signaling a proactive approach from lawmakers, Pakistan is already seeing movement on the regulatory front.
As we previously explored in our detailed article, “Pakistan Takes a Bold Leap into the Future with Landmark Crypto Bill,” Senator Dr. Afnan Ullah Khan has spearheaded the “Virtual Assets Bill 2025.“
This proposed legislation outlines a comprehensive framework for virtual assets in Pakistan, including:
- The introduction of a Digital Rupee, a central bank digital currency aimed at modernizing the financial system and promoting financial inclusion.
- The creation of Virtual Asset Zones, designated areas for crypto businesses to operate under specific regulations, fostering innovation and attracting investment.
- The establishment of a National Virtual Assets Regulatory Commission, to oversee the crypto sector, provide clear guidelines, and ensure consumer protection and market stability.
We encourage you to read our full analysis here.
This proactive approach to regulation, now further reinforced by the Finance Minister’s call for crypto readiness, suggests a growing momentum towards integrating digital assets into Pakistan’s financial future.
- Financial Inclusion: Aurangzeb highlighted the broader global trend of emerging markets exploring digital assets to drive financial inclusion. Crypto, with its accessibility and lower transaction costs, could be a tool to bring more Pakistanis into the formal financial system.
- Digital Transformation: The Finance Minister reiterated Pakistan’s commitment to a cashless society, emphasizing the importance of digital banking solutions like POS systems and QR codes. He positioned crypto as a potential component of this digital transformation, provided the right safeguards are in place.
- Economic Opportunity: By regulating crypto, Pakistan could potentially tap into the burgeoning global digital asset market, attracting investment and fostering innovation within its borders.
Learning from Global Trends
Aurangzeb also drew inspiration from global trends, particularly mentioning discussions at the AlUla Conference in Saudi Arabia.
He noted that emerging markets are actively exploring digital assets and AI to fuel financial inclusion and digital banking.
This suggests Pakistan is looking outward, learning from international experiences, and recognizing that it cannot afford to be left behind in the digital finance revolution.
Challenges and the Path Ahead
While the Finance Minister’s words are encouraging for the crypto community in Pakistan, the path to regulation is undoubtedly complex.
The SBP, while urged to be open-minded, has historically maintained a cautious stance on cryptocurrencies.
Developing a regulatory framework that balances innovation with risk management, consumer protection, and compliance with international standards will be a significant undertaking.
However, Aurangzeb’s public endorsement and call to action represent a major step forward.
It signals a potential shift in government thinking and opens the door for constructive dialogue and collaboration between regulators, banks, and the burgeoning crypto industry in Pakistan.
What are your thoughts on Pakistan potentially embracing cryptocurrency regulation?
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