Pakistan Crypto Council (PCC) rarely radiates self -confidence – a quality that has helped hover to high heights for a short period of time. The council, which was established in March this year, will be led by Prime Minister for Crypto and special assistant to the Prime Minister at Blockchain and Krypto, Bilal Bin Saqib, who also serves as his CEO (CEO).
Last month at a high-level Bitcoin conference in the United States, which also participated by US President Donald Trump’s sons, Saqib Pakistan’s first strategic Bitcoin Reserve (SBR) revealed.
But while the prime minister held meetings with cryptoists, decision makers raised questions at home at the pace of PCC. Legislators also expressed that Cryptocurrencies were banned nationwide. This deficient dichotomy could, according to legislators, influence Pakistan’s position in the Global Crypto Race.
Managing Director of Antematter[dot]IO, a technology technology company that builds solutions using Web3 and Artificial Intelligence (AI), Soban Raza adds its perspective: “At a basic level and to speak rather theoretically decentralized assets and cryptocurrencies great. But as with all good ideas, the implementation of the idea and the idea of the idea of the idea itself.”
In comments on the visible lack of coordination between different departments, Raza says, “First, PCC revealed the strategic reserve, and shortly after the government unequivocally claimed that Crypto is still illegal in Pakistan.
“This sends mixed signals to the international market and erodes the investor’s confidence.
“We are still not sure where the government as a whole is on crypto, Bitcoin and digital assets.”
However, the discussion led the State Bank of Pakistan (SBP) to clarify that back in 2018, when it advised its regulated units to fail to deal with virtual assets (VAS), it meant as a caution in an economic environment without legal and regulatory framework for such assets – not because the assets themselves were illegal.
After having some clarity in terms of the legality of cryptocurrencies, the country has begun to draw up a regulatory framework for digital and virtual assets; The most recent PCC and other relevant stakeholders, including Securities and Exchange Commission of Pakistan (SECP); SBP; and law and the ministers were held on June 5th.
When Pakistan moves towards an al-Eyes-on-crrypto situation, experts have come up with both suggestions and warnings.
Formerly adviser to the Ministry of Finance Dr. Khaqan Najeeb says: “The country must establish a clear, forward vision for virtual assets that place itself as a progressive, yet cautious jurisdiction.
“This requires combining strong AML [anti-money laundering]/Cft [countering the financing of terrorism] Compliance with innovative regulatory policies and a transparent tax framework to support sustainable growth in the digital asset sector.
“Licensing and supervision must be implemented for cryptocurrency exchanges, custodians, wallet providers and decentralized financing platforms to ensure financial integrity.”
According to official sources, Pakistan currently hosts about 40 million crypto -cartoon books and places it among the most active digital asset markets globally.
“Globally, countries are taking different approaches to virtual assets, Khaqan adds.
“While China maintains a strict ban, Singapore, Switzerland and UAE creates supportive ecosystems through clear guidelines and regulatory sandboxes.
“EU is standardizing rules across Member States.
“Japan and Australia classify cryptocurrencies as legal property and work on a comprehensive framework including AML/CFT obligations and tax policies.”
“With a young, technically knowledgeable population, Pakistan should invest in web 3.0 education, AI and skills development to strengthen youth and promote innovation,” says Khaqan.
Flight of Icarus?
Concerns over the country’s crypto targets appeared mainly after the government told the National Assembly Standing Committee that trade in Cryptocurrencies was still banned across the country.
The government’s metaphorical riding between crypto as a legal currency and a blanket ban on virtual and digital assets has made experts skeptic of the government’s ability to regulate the currency.
Director of research at brokerage firm Topline Securities Shankar Talreja believes it is quite challenging to regulate crypto … as these rules must comply with the framework/guidelines for FATF and the IMF.
“Due to Krypto’s boundless nature, it can be exploited if unregulated or poorly regulated.”
“Pakistan also markets himself as a potential hub for energy-intensive digital industries, including Bitcoin Mining and AI data centers.
“The country recently awarded 2000 megawatts (MW) electricity in support of Bitcoin Mining and AI data centers.
“But this bold feature has drawn criticism from experts who believe that Crypto Council could fly too close to the sun.”
They claim that given the country’s dependence on expensive energy sources such as LNG and Coal, Bitcoin mining is financially unsustainable without state aid. This leads the country to a catch-22 situation.
If the government’s distributions are approved, it can raise electricity costs for ordinary citizens and small businesses. With electricity rates that are already unsustainable, the system becomes increasingly inevitable. Power shortages are threatening, and ordinary citizens are stiffening for another round of customs duties. And if it does not, the country has to face high operating costs.
An energy expert who spoke on condition of anonymity explains: The current extra power production uses imported liquid natural gas (LNG) at a price of about 10 cents per year. Kilowatt-time (kWh).
This, he says, is significantly higher than the operating costs of less than 1 cents per day. KWh for geothermal plants employed by Bitcoin mining in many countries. “Is it financially viable that my Bitcoin [in Pakistan]? “
But the current crisis goes far beyond energy, according to the expert. Pakistan lacks the consistency needed for long -term projects, according to him.
“Several projects under the China-Pakistan Economic Corridor (CPEC), once hailed as a transformative initiative, have been abandoned, he added.
“This is not just wrong management; it’s a pattern,” he adds.
Experts have also pointed out internal discrepancies about the country’s resources. “Minerals, many of them critical and valuable, have been auctioned at thrown prices, often acquired by politically connected elites,” says the energy expert. Consider the growing evidence of economic oppression in regions such as Khyber Pakhtunkhwa and Balochistan, where local populations are often the first to carry brown of extraction policies and neglect. “How can Pakistan move on?” he said.
The path forward
Najeeb believes that Pakistan’s excess electricity provides an opportunity for the private sector-led Bitcoin mining and blockchain data centers.
“A commercially sustainable framework for marginal cost electricity supply can be developed taking into account the current energy costs and infrastructure challenges.”
He also advises on creating a dedicated authority that can be transferred “License, supervision and promote tokenization of national assets and government debt that locks new opportunities for digital financing and export.
“While new technologies have inherent risks and are not healing everyone, Pakistan must build institutional capacity, enforce compliance and educate consumers to mitigate fraud and systemic risks, thereby utilizing blockchain and AIS full financial potential.”
“Cryptocurrency gains must be treated as tax assets for capital gains, giving clarity and justice that will encourage compliance and help formalize the large informal crypto market. As one of the largest recipients of transfers-over $ 35 billion dollars annually can Pakistan take great advantage of adopting Blockchain-based overrun Overring Solutions, Reducing Overrill Freet Khaqan adds.
Per Naeem Ilyas Khanani, CEO of Magna Engineering PVT LTD, could the independent system and market operator (ismo) bring an era of “transparency, competition and efficiency”.
“[In 2024, the Cabinet Committee on Energy (CCoE) approved the formation of the ISMO].
In his case study on how ismo can transform Pakistan’s electric sector, Khanani explains that Ismo’s effective market mechanisms can facilitate the optimized allocation and control of [the country’s surplus power]Which makes such operations more viable and cost -effective ”.
He adds that stable, competitive prices energy and a compatible digital active ecosystem create an attractive environment for global AI and crypto mining companies to invest in and establish operations in Pakistan.
“This ecosystem, supported by key regulatory bodies such as SECP, SBP, PCC, DAAP and BLOCKCHAIN LAYER 1 technologies like Nextgen, contribute directly to digital foreign direct investments (DFDI).
“AI and Crypto Mining can be seen as a form of export of computational power,” adds Khanani.
By providing the necessary energy infrastructure and legislative clarity, Pakistan has the opportunity to become a key player in these global digital industries and generate significant export revenue.
According to Khanani, the compatible regulatory framework relieved by ISMOs, especially in areas such as Renewable Energy Certificate (RECS) and Carbon Credits, pave the way for the creation and export of new digital asset classes that further diversify Pakistan’s export portfolio.
Whether Pakistan is hovering or booths in the digital economy depends not only on ambitions-but on adaptation, accountability and a clear view of its borders.
Aimen Siddiqui is the head of Business Desk at News International.
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