Pakistan now ranks third in the world for crypto use, with around 40 million Pakistanis holding crypto-linked accounts. That’s according to Bilal Bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), who briefed the Senate Standing Committee on Cabinet Secretariat this week. Saqib put Pakistan’s virtual-asset market at $250 billion, with $10 to $20 billion of that being Pakistani money, and said most users are under 40. He also confirmed that two international crypto firms have until September 5 to complete registration, or face restrictions.
Regulating It, Not Promoting It
Saqib told the committee that Pakistan isn’t trying to promote cryptocurrency. Instead, the government is trying to regulate something that’s already widely used, especially among younger people. He said the State Bank of Pakistan’s restrictions on digital assets over the past eight years had held the country back from adapting to the technology sooner.
According to Saqib, PVARA put together its virtual-asset regulatory framework in just five months, which he called one of the fastest such efforts anywhere. He said the UAE, Hong Kong, and Thailand are also working on their own frameworks for virtual assets right now.
Registration Deadline: September 5
Two international virtual-asset companies have already received no-objection certificates from PVARA and have until September 5 to finish registering. After that date, PVARA plans to start enforcement action against any operators still working without one. The cabinet secretary added that crypto businesses will not be allowed to operate without a license.
On taxation, Saqib pointed to India’s 30% tax on virtual assets as one example, but said Pakistan is still working out the right rate for its own market. He warned that taxing crypto too heavily could push investors and businesses to move their activity offshore instead.
