Govt considers establishing National Crypto Council, says FM

February 26, 2025 (MLN): The government will consider establishing a National Crypto Council, which will serve as a dedicated advisory body comprising key government representatives, regulatory authorities, and industry experts.

This was stated by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, who chaired a high-level meeting on digital assets.

This Crypto Council will oversee policy development, address regulatory challenges, and ensure that Pakistan’s digital asset ecosystem evolves in a secure, compliant, and sustainable manner, he added.

The Council will also collaborate with friendly countries to develop standardized frameworks for international digital economic engagement, the finance minister further noted.

He emphasized the importance of a well-regulated digital asset framework, aligning Pakistan with international best practices and complying with Financial Action Task Force (FATF) guidelines, according to the press release issued.

Muhammad Aurangzeb directed relevant stakeholders to formulate a comprehensive framework that ensures security, transparency, regulatory compliance, and economic viability while safeguarding against financial crimes and illicit activities.

He also stressed the need for a balanced approach—one that encourages innovation and investment in digital assets while maintaining strict regulatory oversight in line with international standards.

Pakistan currently has over 20 million active users in the digital asset market who face significant challenges, including high transaction fees.

The finance minister reaffirmed his commitment to regulating and encouraging this industry by adopting appropriate frameworks, laws, and incentives to ensure transparency and facilitate digital business growth.

Participants in the meeting discussed the global evolution of cryptocurrency, its increasing adoption, and the regulatory frameworks being implemented internationally, in line with U.S. government policies.

The deliberations focused on financial security, risk mitigation, and the potential impact of digital assets on Pakistan’s economy.

He highlighted the government’s commitment to exploring digital assets and integrating blockchain technology as part of its broader strategy to modernize the financial sector.

Discussions also included the tokenization of key infrastructure and state-owned enterprises (SOEs) assets, allowing for increased liquidity, broader investor participation, and greater efficiency in capital markets.

It was noted that various stakeholders, including foreign and domestic investors, have already developed product-ready digital asset solutions that could be explored within a regulatory sandbox.

The meeting concluded with a consensus on adopting a cautious yet forward-looking approach, ensuring that future developments in the digital asset space align with national interests, FATF guidelines, and global financial standards.

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