SBP issues clarification on virtual assets' legal status

KARACHI: The State Bank of Pakistan (SBP) issued a clarification regarding cryptocurrencies labeled as ‘illegal’ in Pakistan, stating that its 2018 advisory did not classify virtual assets (VAs) as unlawful instead it merely advised its regulated entities to refrain from engaging with them due to the ‘absence of a legal and regulatory structure’.

“With reference to the news items regarding the 14th meeting of the National Assembly’s Standing Committee on Finance and Revenue, it is clarified that State Bank of Pakistan (SBP), in 2018 advised its regulated entities including Banks, Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Electronic Money Institutions (EMIs), Payment System Operators (PSOs), Payment Service Providers (PSPs), and Exchange Companies to avoid dealing in Virtual Assets (VAs) due to the absence of any legal and regulatory framework for the VAs; not because it was declared illegal in the country,” the clarification read.

The central bank said that the advisory back in 2018 was aimed to protect its regulated entities and their customers from the risks emanating due to the absence of legal and regulatory framework for VAs in the country.

“The SBP and Finance Division are currently engaged with the Pakistan Crypto Council established by the Federal Government for, among others, developing an appropriate legal and regulatory framework for VAs in Pakistan,” it added.

“We understand that the legal and regulatory framework would provide the requisite clarity and legal coverage about the VAs ensuring consumer and investor protection.”

Pakistan Crypto Council (PCC) Chief Executive Officer Bilal Bin Saqib on Thursday announced Pakistan’s first government-led Strategic Bitcoin Reserve.

During a keynote address at the Bitcoin 2025 conference in Las Vegas, Special Assistant to the Prime Minister on Blockchain and Cryptocurrency Bilal Bin Saqib made the announcement.

The event was attended by prominent figures, including U.S. Vice President JD Vance, Eric Trump, and Donald Trump Jr. Saqib expressed gratitude to U.S. President Donald Trump for his role in easing recent India-Pakistan tensions and supporting cryptocurrency adoption, crediting U.S. policies as inspiration for Pakistan’s move.

Saqib emphasized that the Bitcoin reserves, to be held in a national Bitcoin wallet, are intended as a long-term sovereign asset, not for speculation or sale. He stated that Pakistan’s government will never use these reserves to capitalize on Bitcoin’s price fluctuations, ensuring their stability as a national asset.