The State Bank of Pakistan (SBP) has clarified that Bitcoin and other cryptocurrencies are not illegal in the country, though they remain unregulated for now. In an official statement, the central bank revealed that the Crypto Council and the Ministry of Finance are collaborating to develop a legal framework for virtual assets.
In 2018, the SBP had banned banks and financial institutions from dealing in cryptocurrencies due to the absence of regulations and concerns over financial risks. The new framework aims to provide legal protection to investors while ensuring stability in the financial system.
The SBP confirmed that while policy formulation for crypto assets is underway, regulated financial institutions are still prohibited from cryptocurrency trading until proper rules are established. The move seeks to balance innovation with consumer protection and risk management.
Also read Pakistan enters Crypto Space with strategic Bitcoin Reserve
