Islamabad: In a Senate Standing Committee on Finance meeting, the Deputy Governor of the State Bank clarified that cryptocurrency in Pakistan is not outright illegal but remains in a “grey area” due to the absence of formal legislation.
According to the briefing, Pakistani youth have shown significant skills in this sector and remain active on various platforms. However, the lack of regulation has prevented the market from operating within a clear legal framework.
The Deputy Governor explained that in the absence of a comprehensive law, cryptocurrency cannot be declared fully legal or illegal. For now, it remains in a transitional state without formal recognition.
Committee Chairman Saleem Mandviwalla questioned why crypto dealings are treated as “grey zone” transactions when hawala and hundi are considered outright illegal. He emphasized that this contradiction must be resolved through clear regulation.
Senator Mohsin Aziz raised further concerns, revealing that cryptocurrencies are increasingly being used in criminal activities such as kidnapping for ransom, where criminals now demand payments in digital assets instead of cash.
Meanwhile, Senator Dilawar Khan criticized Pakistan’s complex tax structure, stating that multiple levies like super tax and sales tax create unnecessary burdens. He proposed a uniform 5% tax across all sectors, which, according to him, could increase overall tax collection by up to 40%.
The committee has sought further recommendations to finalize the upcoming “Virtual Asset Bill 2025” aimed at regulating digital currencies and related activities.
