Pakistan Crypto Council: New Rules & Stock Market Crash Impact

Pakistan is stepping up its game in the digital finance world with the launch of the Pakistan Crypto Council (PCC) in March 2025. 

This move signals a shift from the country’s earlier cautious stance on cryptocurrencies, aiming to regulate blockchain and digital assets while aligning with global standards. 

Led by Finance Minister Muhammad Aurangzeb, the PCC is tasked with creating a secure, innovation-friendly crypto ecosystem. However, recent economic turbulence, including a stock market crash, raises questions about how these new rules will play out. 

Let’s dive into what’s happening with Pakistan’s crypto rules, the PCC’s role, and the market’s challenges.

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What is the Pakistan Crypto Council?

The PCC is a government-backed body designed to oversee blockchain technology and digital assets integration into Pakistan’s financial system. 

Chaired by Finance Minister Muhammad Aurangzeb, it includes heavyweights like the State Bank of Pakistan’s Governor, the Securities and Exchange Commission (SECP) Chairman, and federal secretaries from IT and Law. 

Bilal Bin Saqib, a 34-year-old blockchain expert, serves as the Special Assistant to the Prime Minister, driving daily operations.

Strategic Advisors

The council has roped in global crypto leaders like former Binance CEO Changpeng Zhao (CZ) and MicroStrategy’s Michael Saylor as strategic advisors. 

Their involvement highlights Pakistan’s ambition to become a regional hub for digital finance, leveraging expertise to craft robust policies.

Read Also: India VS Pakistan: Asim Munir's New Threat

New Crypto Rules in Pakistan

The PCC has formed a technical committee to draft a comprehensive framework for digital and virtual assets. 

This group, comprising representatives from SBP, SECP, Law, and IT divisions, is working to align Pakistan’s crypto rules with international standards set by the Financial Action Task Force (FATF). 

The goal? Create a transparent, secure environment that encourages innovation while preventing risks like money laundering.

Strategic Bitcoin Reserve

In May 2025, Pakistan unveiled its first government-led Strategic Bitcoin Reserve, a national bitcoin wallet holding state-owned digital assets. 

This reserve isn’t for trading but signals Pakistan’s long-term belief in decentralized finance. The move aims to provide financial tools for the 100 million unbanked Pakistanis, boosting inclusion.

Challenges with IMF

Despite these ambitions, Pakistan’s crypto plans hit a snag when the IMF rejected a proposal to subsidize electricity for Bitcoin mining. 

The government had planned to allocate 2,000 MW of surplus power at low rates to attract investors, but the IMF cited concerns over market distortions and strain on the power sector. 

A scaled-back three-month trial was approved instead, showing the delicate balance between innovation and economic stability.

Pakistan’s Stock Market Crash: Context and Impact

On July 5, 2025, Pakistan’s stock market benchmark index plummeted by 5.78% following heightened tensions with India after a terror attack in Jammu and Kashmir. 

This crash reflects broader economic volatility, with rising sugar prices and energy challenges adding pressure. The stock market’s instability could complicate the rollout of crypto regulations, as investor confidence wanes.

Crypto as a Safe Haven?

Interestingly, while traditional markets falter, Pakistan’s crypto market, estimated at $300 billion annually, continues to attract young investors. 

With over 70% of the population under 30 and 40 million active crypto users, digital assets offer an alternative to volatile stocks. Tokenized real estate, backed by tangible assets, is also gaining traction as a secure investment option.

Read Also: Will the Conflict Between India and Pakistan Impact the Global Economy?

Opportunities and Risks of Pakistan’s Crypto Push

Opportunities

• Economic Growth: Regulated crypto could attract foreign investment and create jobs, especially in blockchain and IT sectors.

• Financial Inclusion: Crypto offers solutions for freelancers and the unbanked, streamlining remittances and payments.

• Global Competitiveness: With advisors like CZ and Saylor, Pakistan could position itself as a digital finance leader in South Asia.

Risks

• Regulatory Gaps: Without robust enforcement, risks like fraud and illicit activities could undermine trust.

• Economic Instability: The recent stock market crash and IMF pushback highlight the need for careful policy implementation.

• Energy Concerns: Bitcoin mining’s high energy demands could strain Pakistan’s power grid if not managed sustainably.

Read Also: Pakistan's New Energy Plan: Will It Push Bitcoin's Adoption?

Conclusion

Pakistan’s launch of the Pakistan Crypto Council and new crypto rules marks a bold step toward embracing digital finance. With a young, tech-savvy population and a $300 billion crypto market, the potential for growth is huge. 

The PCC’s efforts to regulate blockchain, establish a Bitcoin reserve, and align with global standards show ambition, but challenges like the recent stock market crash and IMF concerns remind us of the need for caution. 

By balancing innovation with strong oversight, Pakistan could become a crypto powerhouse while stabilizing its economy. The road ahead is tricky, but the stakes are high, watch this space for what’s next.

FAQ

What is the Pakistan Crypto Council (PCC) and who runs it?

PCC is a state-backed body regulating crypto in Pakistan, chaired by Finance Minister Aurangzeb, with key roles from SBP, SECP, and IT & Law ministries.

What’s the deal with Pakistan’s Strategic Bitcoin Reserve?

It’s a national Bitcoin wallet launched in May 2025, non-tradable and aimed at long-term adoption and boosting financial inclusion for 100M+ unbanked citizens.

Are Pakistan’s new crypto rules aligned with global standards?

Yes, the PCC’s technical committee is drafting regulations based on FATF guidelines to ensure transparency and prevent misuse like money laundering.

Did Pakistan try to power Bitcoin mining with cheap energy?

Yes, but the IMF blocked full subsidies over power sector concerns. A limited 3-month mining trial using surplus energy was approved instead.

Is crypto gaining traction despite the stock market crash?

Absolutely. With 40M crypto users and 70% of the population under 30, digital assets are booming as safer, decentralized alternatives to unstable stocks.

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