ISLAMABAD:
Prime Minister Shehbaz Sharif on Friday constituted the Pakistan Crypto Council, which will have the mandate to introduce new regulatory guidelines for launching digital currency — a move backed by all key stakeholders.
The five-member council will be chaired by Finance Minister Muhammad Aurangzeb, while his chief advisor, Bilal Bin Saqib, will serve as the Chief Executive Officer, according to a notification issued by the Ministry of Finance.
The move comes amid a five-month delay in making digital currencies a legal tender in Pakistan by amending existing laws and regulations. The federal government has proposed amendments to the State Bank of Pakistan (SBP) Act to declare digital currencies as legal tenders. However, the law remains pending for cabinet approval due to disagreements over clauses related to dual nationality.
In November last year, the finance ministry proposed around a dozen amendments to the SBP Act, which the Ministry of Law vetted. These amendments primarily focused on allowing dual nationals to become the governor and deputy governors of the SBP and adopting digital currencies.
However, PM Sharif opposes allowing dual nationals to hold key positions in the central bank and has blocked the bill’s approval three times.
The proposed amendments in the SBP Act introduce the concept of digital currency in the country for the first time. Until now, the SBP had consistently rejected digital currency proposals and even issued public advisories warning against their use.
Sources said the government decided to form the Crypto Council after consultations between civil and military authorities. Recently, a US delegation on digital initiatives also met with the finance minister.
The proposed amendments in the SBP Act define digital currency as “a digital form of currency issued by the bank under section 24 as legal tender under section 25.” Section 24 authorises the SBP to issue banknotes, which are recognised as legal tender under section 25.
Additionally, an amendment to section 4C, which defines the SBP’s functions, proposes granting the central bank the authority to issue digital currency. This change would allow the SBP to manage Pakistan’s currency “in physical or digital or both forms.” The SBP also plans to establish a subsidiary to develop and operate digital payment systems.
The amendments to section 17 authorise the SBP to conduct “central bank digital currency” business, with similar changes proposed for section 24.
Previously, the SBP issued public advisories warning against virtual currencies such as Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, and PayDiamond, clarifying that these tokens were not recognised as legal tender in Pakistan.
The new amendments also propose penalties for unauthorised digital currency issuance. Anyone found issuing digital currency illegally would be fined an amount equal to twice the value of the illegal issuance.
The finance ministry stated that the Pakistan Crypto Council marks a significant step in the country’s efforts to regulate and integrate blockchain technology and digital assets into its financial landscape. The council is set to play a pivotal role in formulating policies, fostering innovation, and ensuring a secure and forward-thinking approach to crypto adoption in Pakistan.
The finance minister will serve as the chair of the Pakistan Crypto Council. Bilal Bin Saqib, the chief advisor to the finance minister on the council, has been appointed as its CEO, bringing his expertise in blockchain technology, investment strategy, and digital innovation to spearhead the initiative.
The Pakistan Crypto Council’s immediate board members include the State Bank of Pakistan governor, the Securities and Exchange Commission of Pakistan (SECP) chairman, the federal law secretary, and the federal Information Technology secretary.
This diverse leadership structure ensures that regulatory oversight, financial stability, legal frameworks, and technological advancements are aligned to support Pakistan’s crypto ecosystem, the ministry stated.
The formation of the Pakistan Crypto Council signifies the government’s proactive stance in positioning Pakistan at the forefront of the global shift toward blockchain technology and digital assets. With regulatory clarity and a structured approach, Pakistan aims to foster a safe and compliant environment for investors, businesses, and innovators in the crypto space.
Aurangzeb stated that the world was moving rapidly toward digital finance, and Pakistan wants to be a leader in this space.
“The establishment of the Pakistan Crypto Council is a step toward embracing innovation while ensuring that we create a regulatory framework that protects investors and the financial system,” said Aurangzeb.
“Pakistan is committed to fostering a responsible and progressive crypto ecosystem that can contribute to the country’s economic growth,” he added.
According to the terms of reference of the newly constituted council, it will establish clear regulatory guidelines to facilitate crypto adoption. It will also engage with international crypto and blockchain organisations to ensure the adoption of best practices, according to the notification.
Saqib stated that the council is not just about regulations but about creating an ecosystem where blockchain and digital finance can thrive.
“Our goal is to ensure that Pakistan becomes a competitive player in the global digital economy while prioritising security, transparency, and innovation,” he said.
The Pakistan Crypto Council will focus on developing clear regulatory policies, engaging stakeholders from both the public and private sectors, and positioning Pakistan as a key player in the global digital asset landscape.
The council also has the mandate to protect consumers and ensure financial security through robust legal and compliance frameworks.
