Pakistan Rolls Out Red Carpet for Crypto Firms: New Licensing Framework Now Open for Applications

Pakistan just flipped the switch on crypto legitimacy—and the industry's taking notice.

Regulatory Green Light

The nation's financial authorities unveiled a comprehensive licensing framework, inviting digital asset companies to operate within formal boundaries. This move positions Pakistan alongside progressive jurisdictions embracing blockchain innovation rather than stifling it.

Market Momentum Builder

With clear rules of engagement, crypto businesses gain operational certainty—something traditional finance often struggles to provide without three layers of middle management and endless compliance committees. The framework establishes guardrails while recognizing digital assets as legitimate financial instruments.

Strategic Positioning

Pakistan's play isn't just about regulation—it's about capturing market share in the rapidly evolving digital economy. By creating a structured environment, they're attracting quality operators while weeding out bad actors. It's the financial equivalent of installing lights on a previously dark playground.

Because nothing says 'serious financial innovation' like having bureaucrats approve your blockchain transactions.

Pakistan’s Crypto Surge: New Authority, Bitcoin Reserve, and Global Collaboration

Pakistan ranks third in Chainalysis’ 2025 Global crypto Adoption Index report, advancing and establishing itself as one of the world’s most rapidly expanding cryptocurrency markets. On May 22, 2025, the country’s government set up a new organization called the Pakistan Digital Assets Authority (PDAA). 

Further, on May 28, 2025, Pakistan introduced its first government-backed Bitcoin reserve. At the Bitcoin 2025 conference in Las Vegas, Bilal bin Saqib emphasized this move as part of the country’s shift toward a pro-cryptocurrency regulatory framework.

Additionally, Pakistan allocated 2,000 megawatts of surplus electricity for bitcoin mining and AI centers, an initiative by the Pakistan Crypto Council backed by the Ministry of Finance. However, in July, the IMF raised concerns over using surplus power for crypto mining, rejecting a proposal for subsidized electricity to energy-intensive sectors, including miners.

While establishing a new regulatory authority to oversee cryptocurrencies, the country faced a paradox as the State Bank of Pakistan continues to uphold its ban on crypto trading.

Also Read: India and Pakistan in Crypto Adoption War: Who Stands Where?