Pakistan blockchain policy: What’s allowed, blocked, and where crypto stands in 2025
When it comes to Pakistan blockchain policy, the official government stance that restricts financial institutions from handling cryptocurrency transactions. Also known as Pakistan crypto regulations, it’s one of the most restrictive frameworks in South Asia. The State Bank of Pakistan doesn’t recognize any digital asset as legal tender, and banks are banned from processing crypto-related payments. That doesn’t mean crypto disappeared—it just went underground, into the hands of licensed VASP Pakistan, Virtual Asset Service Providers authorized by the Securities and Exchange Commission of Pakistan to handle crypto exchanges and wallet services. These VASPs are the only legal bridge between crypto and the Pakistani economy, forcing users to convert Bitcoin or Ethereum into Pakistani Rupees before spending it.
The government’s fear isn’t about technology—it’s about capital flight. With inflation hitting 30% in 2024, many Pakistanis turned to crypto to protect savings. But when billions flowed out of the country through peer-to-peer trades, regulators stepped in hard. In 2025, the rules haven’t changed: you can own crypto, but you can’t use it to pay for goods, send remittances, or trade through local banks. Even crypto exchanges operating in Pakistan must be registered with the SEC and report all user activity. This has led to a strange split: millions use Binance or Bybit for trading, but never link their Pakistani bank accounts directly. Instead, they rely on mobile wallets, cash deposits, or third-party payment agents.
What’s missing from the official policy? Clarity on taxation. Unlike Thailand or Taiwan, Pakistan hasn’t defined whether crypto gains are taxable. That leaves users in legal gray zones—no one’s being fined yet, but no one’s protected either. Meanwhile, blockchain projects outside finance are quietly growing. Some universities are testing blockchain for academic records, and a few startups are using smart contracts for supply chain tracking in agriculture. But these are exceptions, not policy-driven initiatives.
The posts below cut through the noise. You’ll find real stories from Pakistani crypto users, breakdowns of which exchanges still work locally, and warnings about scams pretending to offer "legal crypto banking" in Pakistan. You’ll also see how other countries with similar restrictions—like Nigeria and Argentina—handle the same problem, and what lessons Pakistan might learn. No fluff. No hype. Just what’s actually happening on the ground in 2025.