When it comes to crypto regulation in Pakistan, the official stance from the State Bank of Pakistan is a complete ban on cryptocurrency transactions, exchanges, and usage as payment. Also known as Pakistan crypto law, this policy has been in place since 2021 and remains unchanged in 2025. Unlike countries that tax or license crypto, Pakistan treats it like a financial threat — not an asset.
The State Bank of Pakistan, the country’s central banking authority, explicitly prohibits banks and financial institutions from handling any crypto-related transactions. Also known as SBP crypto rules, this restriction cuts off the main pipeline for legal on-ramps. You can’t deposit crypto to a Pakistani bank account. You can’t use crypto to pay for goods. And if you’re caught running a crypto exchange, you could face fines or worse. But here’s the twist: people still trade. Thousands do. They use P2P platforms like LocalBitcoins and Paxful, send money through hawala networks, or use VPNs to access foreign exchanges like Binance. The ban didn’t stop crypto — it just made it riskier.
The cryptocurrency ban Pakistan applies to everyone — individuals, businesses, even NGOs. There’s no official license for crypto startups. No legal framework for token sales. No tax guidance. This isn’t like Nigeria, where crypto is regulated but not legal tender. In Pakistan, it’s outright forbidden. Yet, the government hasn’t cracked down hard on regular users. Enforcement is patchy. Most actions target large-scale operators or money laundering rings. For the average person, the risk is low — but the legal exposure is real. If your bank account gets flagged for crypto deposits, they can freeze it. If you’re caught trading on an unlicensed platform, you could be investigated. No one’s been jailed for buying Bitcoin, but the threat hangs over every transaction.
What’s missing? Clear communication. The State Bank doesn’t explain why crypto is dangerous. It doesn’t offer alternatives. It doesn’t update its stance even as other countries in the region — like India and Vietnam — move toward regulation. The result? A gray zone where crypto thrives underground. You’ll find crypto traders in Karachi, Lahore, and Islamabad. You’ll see ads for crypto tutoring on Facebook. You’ll hear stories of people earning from mining rigs in their garages. All of it exists outside the law.
This collection of posts dives into the real-world impact of this ban. You’ll find reviews of exchanges people use anyway — platforms with no KYC, zero support, and high scam risk. You’ll see comparisons with other countries like Vietnam and Morocco, where crypto is banned too — but changes are coming. You’ll learn how people bypass restrictions, what tools they rely on, and why most of these workarounds are dangerous. There’s no sugarcoating here. If you’re in Pakistan and thinking about crypto, you need to know the risks, the loopholes, and the hard truth: the law isn’t on your side.
Pakistan launched its first crypto exchange licensing system in July 2025 under PVARA. Only globally licensed exchanges can apply. The process takes at least three months and requires strict AML/KYC compliance. Banks still can't support crypto, creating a legal grey area.