By Talha Sikandar Khan
Cryptocurrency adoption in Pakistan has surged in recent years, attracting both genuine investors and malicious actors. The absence of a comprehensive regulatory framework has led to several high-profile fraud cases, highlighting the urgent need for effective legislation. In 2018, the State Bank of Pakistan (SBP) imposed a ban on banks and financial institutions, prohibiting them from processing cryptocurrency transactions. The decision was driven by concerns over fraud, money laundering, and terrorist financing risks associated with unregulated digital assets. The SBP’s directive warned individuals and businesses against engaging in crypto-related activities, emphasizing that virtual currencies were not recognized as legal tender in Pakistan.
In 2022 under Binance-Linked Investment Scams, the Federal Investigation Agency (FIA) uncovered a $100 million scam involving fraudulent mobile applications linked to Binance, a major cryptocurrency exchange. Investors were promised substantial returns but ultimately lost their funds. Just like Ponzi and Pyramid Schemes have surfaced in the past, luring people with the promise of high returns, similar fraudulent tactics continue to emerge. These schemes depend on new investments to pay earlier investors but eventually collapse, leading to substantial financial losses. On multiple occasions, scammers have exploited social engineering techniques to steal private keys from cryptocurrency holders, allowing them to access and drain digital wallets. Recently, the Treasure NFT platform drew investors by promising lucrative returns through NFT trading. However, it displayed several warning signs, including withdrawal issues and a referral-based revenue model resembling a Ponzi scheme, raising doubts about its legitimacy.
Pakistan has recently undertaken significant steps to regulate and integrate virtual assets into its financial system through the introduction of the Virtual Assets Bill 2025 and the establishment of the Pakistan Crypto Council (PCC).The PCC was officially launched on March 14, 2025, as a government-backed initiative aimed at regulating and integrating blockchain technology and digital assets into Pakistan’s financial landscape. The initiative to establish the Pakistan Crypto Council was announced on February 25, 2025, with formal plans developed under the leadership of Finance Minister Muhammad Aurangzeb. A key focus of the PCC is to safeguard individuals who invest in cryptocurrencies. This includes implementing measures to prevent scams, fraud, and market manipulation. By setting up licensing requirements for crypto-related businesses, the PCC can ensure that only legitimate and trustworthy entities operate in the market, reducing the scope for scams.By adopting global best practices, the PCC can benefit from the experiences of other countries in combating crypto scams and ensure that Pakistan’s regulatory framework is robust. While encouraging the growth of the crypto sector, the PCC aims to do so in a way that prioritizes security and consumer protection, thereby mitigating the risks of scams.
The establishment of the PCC comes at a time when Pakistan is witnessing significant adoption of cryptocurrencies, with an estimated 15-20 million people already trading digital assets. The government’s move to legalize and regulate the sector is driven by several factors, including the potential to attract foreign investment, modernize the economy, and generate tax revenue. The PCC is led by Finance Minister Muhammad Aurangzeb, with Bilal Bin Saqib serving as the Chief Executive Officer. The council’s board includes key officials from the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan (SECP), and other relevant government bodies. This diverse leadership structure aims to ensure a comprehensive and effective approach to regulating the cryptocurrency market and combating scams.
The PCC is set to play a pivotal role in formulating policies, fostering innovation, and ensuring a secure and forward-thinking approach to crypto adoption in Pakistan. The PCC aims to mitigate fraud and protect consumers engaging in cryptocurrency transactions through clear regulations and oversight mechanisms. This reflects Pakistan’s commitment to responsibly embracing digital finance, ensuring the protection of investors and the financial system. By fostering a secure and transparent crypto environment, the PCC strives to position Pakistan as a leader in digital financial innovation, creating a dynamic and secure digital ecosystem. Public awareness campaigns are also key to educating citizens on the risks of cryptocurrency investments and promoting safe practices. Through comprehensive regulations, enhanced investigations, and investor education, Pakistan seeks to reduce cryptocurrency-related fraud and foster a secure environment for digital asset transactions.
