Cryptocurrency in Pakistan: Legal or Banned? 2025

Getting your Trinity Audio player ready...

Wondering if you can trade Bitcoin or Ethereum in Pakistan without getting into trouble? The status of cryptocurrency in Pakistan has been a rollercoaster, leaving many confused. Is it legal, banned, or something in between? This guide breaks it down for Pakistani readers in simple, casual English, perfect for students, traders, or anyone curious in Karachi, Lahore, or Islamabad. We’ve got the latest scoop on crypto laws, platforms like Binance, and tips to stay safe, all tailored for Pakistan in 2025. Let’s dive in!

What’s the Deal with Crypto in Pakistan?

Cryptocurrency—like Bitcoin, Ethereum, or stablecoins—is digital money that runs on blockchain, free from banks or government control. In Pakistan, crypto’s been a hot topic. Over 20 million Pakistanis hold crypto, with trading volumes hitting $25 billion in 2023, despite ups and downs in regulations. Why? The Pakistani rupee’s value dropped 57% against the dollar in 2022–23, pushing people to stablecoins like USDT for dollar exposure. But the big question is: can you legally buy, sell, or mine crypto in 2025?

The Legal Status: A Mixed Bag

As of April 2025, cryptocurrency in Pakistan is not fully legal but also not completely banned. Here’s the breakdown:

• Past Bans: In 2018, the State Bank of Pakistan (SBP) warned against crypto, saying it’s not legal tender and banning banks from handling crypto transactions. In May 2023, Finance Minister Aisha Ghaus Pasha said crypto would “never be legalized” due to Financial Action Task Force (FATF) rules on money laundering. Banks even warned customers against using cards for crypto trading.
• Recent Shift: Things changed in November 2024 when the SBP proposed amendments to its Act, allowing it to issue a digital currency and regulate digital assets like crypto. If approved, this could legalize crypto trading and blockchain services, making Pakistan crypto-friendly. The proposal aims to balance innovation with safety, but it’s still under review.
• Current Reality: Right now, crypto isn’t recognized as legal tender, meaning you can’t use Bitcoin to buy chai at a stall. However, individuals can trade or hold crypto via peer-to-peer platforms like Binance or Paxful, as there’s no direct law banning personal use. The catch? Banks and exchanges face restrictions, and the Federal Investigation Agency (FIA) has cracked down on miners, citing money laundering.

So, crypto exists in a grey area. You can trade, but it’s risky without clear regulations, and the government’s working on a framework to make things official.

Why the Confusion?

Pakistan’s crypto scene is messy because:

• FATF Pressure: The FATF, a global anti-money laundering watchdog, pushed Pakistan to restrict crypto to stay off its “grey list” (a list of countries with weak financial controls). This led to the 2023 ban talk.
• No Clear Law: Unlike the US or UK, Pakistan’s Parliament hasn’t passed a specific crypto law. The SBP’s 2018 warning and 2023 ban statements aren’t backed by legislation, so they’re more like guidelines.
• Public Pushback: Influencers like Waqar Zaka have fought for legalization, arguing crypto could boost Pakistan’s economy. In 2020, Khyber Pakhtunkhwa passed a resolution to legalize crypto, showing some provincial support.
• Economic Need: With inflation at 25%+ and remittances worth billions, Pakistanis use crypto to hedge against rupee devaluation or send money abroad. This demand keeps crypto alive despite restrictions.

Can You Trade Crypto in Pakistan?

Yes, but with caution. Here’s how Pakistanis are doing it in 2025:

• Platforms: Peer-to-peer services like Binance, Paxful, and LocalBitcoins are popular since local exchanges can’t operate freely. You can buy crypto with PKR via bank transfers or mobile apps like Easypaisa.
• Wallets: Many use software wallets (e.g., Trust Wallet) or hardware wallets (available on Daraz.pk for PKR 5,000–15,000) to store crypto safely.
• Risks: Without regulation, you’re at risk of scams (like the 2022 $100 million Binance fraud) or FIA raids if you’re mining. Always use trusted platforms and avoid shady deals.

What About Taxes?

There’s no specific crypto tax in Pakistan yet, but proposals are floating around:

• The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) suggested a 15% tax on crypto trading profits, 5% on foreign exchange account conversions, and 10% on Roshan Digital Account withdrawals. These aren’t law yet but could kick in if crypto’s legalized.
• For now, if you’re trading big, declare profits as income to stay safe with the Federal Board of Revenue (FBR).

Tips for Pakistani Crypto Users

• Stay Safe: Use reputable platforms like Binance or Paxful. Never share your wallet keys or CNIC with random buyers. Check Daraz.pk for secure hardware wallets.
• Start Small: Try small trades (e.g., PKR 5,000 in USDT) to learn the ropes. Avoid investing your life savings—crypto’s volatile!
• Learn the Basics: Watch YouTube tutorials or join WhatsApp groups like “Crypto Pakistan” for tips. DigiSkills.pk offers free blockchain courses.
• Avoid Mining for Now: FIA’s cracked down on mining rigs, so it’s risky until laws clear up.
• Keep Records: Save transaction details in case taxes come into play later.
• Follow Updates: Check propakistani.pk or cointelegraph.com for news on Pakistan’s crypto laws.

What’s Next for Crypto in Pakistan?

The 2024 SBP proposal is a big deal. If it passes, Pakistan could:

• Launch a Central Bank Digital Currency (CBDC) by 2025, like a digital rupee.
• Allow regulated crypto trading, letting exchanges operate legally.
• Set strict Anti-Money Laundering (AML) rules to satisfy FATF, making crypto safer.

Until then, crypto’s in limbo. The government’s warming up to blockchain (they’ve adopted a national blockchain KYC platform), but full legalization depends on Parliament’s approval.

Conclusion

In 2025, cryptocurrency in Pakistan isn’t fully legal or banned—it’s stuck in a grey zone. You can trade or hold crypto via platforms like Binance, but banks and miners face restrictions, and scams are a risk. With the SBP’s 2024 proposal to regulate digital assets, things might get clearer soon, potentially making Pakistan a crypto hub. For now, trade smart, stay updated, and don’t go all-in without research. Want to learn more? Check out cointelegraph.com for global crypto news or join local WhatsApp groups to connect with Pakistani traders. Start small and stay safe!