Pakistan’s Crypto Contradiction: State Bitcoin Projects Flourish While Ban Stays Firm

Despite launching government-backed Bitcoin mining farms and blockchain pilots, Pakistan still treats crypto as contraband—leaving investors in regulatory limbo.

The Hypocrisy Playbook

Officials love the tech (and the tax potential) but won’t legalize it for citizens. Classic case of ‘do as we say, not as we mine.’

Gray Market Thrives

P2P volumes hit record highs last quarter—because nothing fuels adoption like making something illegal. Even the central bank’s warnings can’t stop the tide.

Meanwhile, politicians quietly stack BTC. But hey, at least their fiat monetary policy is consistent…consistently terrible.

Officials Highlight Crypto Policy Inconsistency

Committee members voiced concern over the government’s inconsistency in regards to crypto policy, questioning why the public was being encouraged to invest in crypto despite its legal ban, warning that such actions could expose investors to serious risks.

Recently Pakistan’s government announced to allocate 2,000 megawatts of electricity to power Bitcoin mining and artificial intelligence (AI) data centres. Committee members raised questions about whether the bitcoin mining WOULD be in government or private sector hands, and noted that illegal hawala channels would likely be replaced by unregulated digital transfers.

Pakistan has committed 2,000 megawatts of surplus electricity to fuel Bitcoin mining and artificial intelligence centers.#Pakistan #Bitcoinhttps://t.co/WpnMyo5EgI

The State Bank of Pakistan does not recognize crypto assets. In 2022, the SBP issued an official advisory urging the public to exercise caution and avoid trading in cryptocurrencies.

The committee’s debate on cryptocurrency was sparked by a proposed bill on digital currency regulations introduced by MNA Sharmila Farooqi. She emphasized the urgent need for a regulatory framework to curb potential money laundering risks, particularly in light of Pakistan’s recent removal from the Financial Action Task Force (FATF) grey list.