Yes, cryptocurrency is banned in Pakistan under directives from the State Bank of Pakistan (SBP). As of 2025, buying, selling, and mining digital currencies remain illegal. However, the government has established a new Crypto Council to explore potential regulation, leaving room for future changes.
Understanding the Ban: Why Is Crypto Restricted in Pakistan?
The State Bank of Pakistan (SBP) first limited digital assets in 2018. They issued a circular telling all banks not to handle cryptocurrency transactions. The justification linked risks like money laundering, terrorism financing, and the absence of a clear legal framework.
In 2024, the SBP issued a new directive. The statement indicated that banks and exchanges in Pakistan cannot trade Bitcoin and other cryptocurrencies. The Ministry of Finance agreed with this view. They confirmed that crypto is not legal tender.
The government’s position can be summarized as:
- No bank or financial service is permitted to facilitate cryptocurrency trading.
- Crypto exchanges registered abroad cannot legally operate in Pakistan.
- Authorities treat mining, transacting, and promoting crypto as violations of financial laws.
For now, the answer remains straightforward: the government bans cryptocurrency in Pakistan until a formal framework emerges.
Is Cryptocurrency Legal in Pakistan in 2025?
Many people search for is crypto banned in Pakistan because of rumors of new policies. The reality is that crypto is still not legal, but the situation is evolving.
In March 2025, the government started the Pakistan Crypto Council (PCC). This group will study blockchain uses and suggest rules for digital assets. This council includes members from the Ministry of Finance, the Securities and Exchange Commission of Pakistan (SECP), and technology experts.
While the PCC signals that the government may regulate crypto in the future, nothing has changed legally yet. Owning, trading, or mining still falls under the ban.
Which Bank Allows Cryptocurrency in Pakistan?
Currently, no bank in Pakistan allows cryptocurrency transactions. The SBP explicitly prohibits banks, microfinance institutions, and payment providers from offering crypto-related services.
This means you cannot:
- Buy Bitcoin or Ethereum directly using a Pakistani bank account.
- Use local payment gateways to fund crypto exchanges.
- Legally transfer money abroad for crypto investments.
Some people still use peer-to-peer (P2P) networks and global platforms to access crypto. However, this is illegal under Pakistani law and comes with big risks.
Is Crypto Mining Legal in Pakistan?
Another common question is: is crypto mining legal in Pakistan?
While Pakistan has large areas with cheap electricity, the SBP’s directives cover all crypto-related activities, including mining. That means:
- Setting up mining farms is not legally allowed.
- Using imported mining rigs could result in seizure.
- Law enforcement has authority to shut down mining operations.
That said, some miners continue underground operations, especially in regions with low oversight. But officially, crypto mining is banned in Pakistan, and engaging in it is risky.
The Historical Timeline of Crypto in Pakistan
To fully understand is crypto banned in Pakistan, it helps to review its history:
- 2018: SBP issues a circular banning crypto transactions.
- 2020: SECP releases a position paper exploring the possibility of regulating digital assets.
- 2021–2023: Growing adoption despite the ban, with Pakistan ranking among the top global users of crypto on P2P platforms.
- 2024: SBP reaffirms the ban, making crypto transactions illegal.
- 2025: Government forms the Pakistan Crypto Council to study regulation — but crypto remains banned.
This timeline shows a pattern of prohibition followed by cautious exploration.
Risks of Using Crypto Under the Ban
If you’re wondering is crypto banned in Pakistan, you should also know the consequences of ignoring the ban.
Legal Risks:
- Authorities can confiscate digital assets.
- Violators may face fines or imprisonment under financial crime laws.
- Banks can close accounts linked to crypto activities.
Financial Risks:
- No consumer protection if funds are lost.
- No legal recourse in case of scams or fraud.
- Unregulated P2P platforms expose users to high risks.
Reputation Risks:
- Using crypto can attract scrutiny from law enforcement.
- Businesses involved may face penalties under anti-money laundering rules.
Simply put, the risks outweigh the benefits as long as crypto remains illegal.
Future of Cryptocurrency in Pakistan
Despite the current ban, the future of cryptocurrency in Pakistan could look different in a few years. There are several reasons for cautious optimism:
- Rising Adoption: Despite legal barriers, Pakistan ranks among the top countries in crypto adoption, according to global blockchain reports. Citizens use P2P platforms and overseas accounts to access digital assets.
- Remittance Market: Pakistan relies heavily on remittances from overseas workers. Digital assets could provide a faster, cheaper way to send money — a factor policymakers are watching closely.
- Blockchain Innovation: The government is exploring blockchain for supply chain tracking, land registry, and digital finance. Accepting blockchain often leads to revisiting crypto rules.
- Regional Influence: Neighboring countries like the UAE are becoming global crypto hubs. Pakistan risks falling behind if it doesn’t develop its own framework.
So while today the answer to is crypto banned in Pakistan is yes, the long-term outlook points to eventual regulation.
Cryptocurrency in Pakistan Price Trends
Even with the ban, Pakistanis actively check cryptocurrency in Pakistan price updates through international exchanges and P2P platforms. Prices mirror global markets, for example, if Bitcoin trades at $65,000 internationally, it trades at a similar rate locally (with added P2P premiums).
The strong demand shows that interest remains high, and many citizens see crypto as a hedge against inflation and currency depreciation.
FAQs
Is cryptocurrency allowed in Pakistan?
No, cryptocurrency is not allowed in Pakistan. The SBP prohibits trading, mining, and banking support for digital assets.
Can I legally own cryptocurrency in Pakistan?
While the law is vague on ownership, holding crypto is risky. Authorities can still take action under anti-money laundering laws.
Which bank allows cryptocurrency in Pakistan?
Currently, no bank in Pakistan supports cryptocurrency. All institutions are barred from processing such transactions.
Is crypto mining legal in Pakistan?
No, crypto mining is banned as part of the overall prohibition. Mining farms and rigs can be seized by authorities.
What is the future of cryptocurrency in Pakistan?
The government has set up the Pakistan Crypto Council to explore regulation, which suggests potential legalization in the future.