Pakistan is moving closer to recognizing cryptocurrencies as a legitimate financial instrument, with the government considering the establishment of a National Crypto Council. This marks a significant policy shift, as digital assets were previously deemed a no-go area by regulators. The move aligns with global trends, particularly as the Trump administration in the United States signals a more accommodating stance toward cryptocurrencies.
On Tuesday, the finance ministry announced its plans to explore the formation of a dedicated crypto advisory body that will help shape regulations for digital assets in the country. The proposed National Crypto Council will bring together key government representatives, regulatory authorities, and industry experts to oversee policy development, address regulatory challenges, and promote a secure, compliant, and sustainable digital asset ecosystem. The council will also collaborate with international partners to develop standardized frameworks for digital economic engagement.
The announcement followed a high-profile meeting between Finance Minister Muhammad Aurangzeb and a foreign delegation, which included digital asset advisers linked to U.S. President Donald Trump. According to an official statement, the meeting focused on global cryptocurrency adoption, regulatory developments, and risk mitigation strategies. While the statement did not name the delegates, sources confirmed they included Gentry Beach Jr, Nikita Goldsmith, Alex Malkov, and Jerad Finck.
The visit is particularly notable given that Gentry Beach, a known business associate of President Trump and the father of one of the delegates, had previously assured Prime Minister Shehbaz Sharif of potential investments exceeding $1 billion in Pakistan. Malkov is recognized for his work as a consultant for major blockchain and fintech firms, while Finck serves as CEO of Cosmic Wire, a company specializing in blockchain solutions. Goldsmith, meanwhile, is described as a tech entrepreneur. Interestingly, the U.S. Embassy did not officially announce the delegation’s visit, despite typically issuing readouts for official meetings.
The government’s stance on cryptocurrency has evolved significantly in recent months. Previously, both the State Bank of Pakistan (SBP) and former finance ministers had categorically rejected the idea of legalizing digital assets, with the central bank even issuing warnings against cryptocurrency transactions. However, Finance Minister Aurangzeb has taken a more progressive approach, advocating for an open-minded discussion on the subject.
During the meeting, the finance minister emphasized the importance of aligning Pakistan’s regulatory approach with global best practices and Financial Action Task Force (FATF) guidelines. He acknowledged the growing presence of digital assets in the financial ecosystem and stressed the need for a well-regulated framework to ensure financial security and economic stability.
Key discussions also revolved around the potential tokenization of infrastructure and state-owned enterprise (SOE) assets. Tokenization could introduce greater liquidity, attract broader investor participation, and enhance efficiency in capital markets. It was noted that both domestic and foreign stakeholders have already developed digital asset solutions that could be tested within a regulatory sandbox before wider adoption.
Pakistan is home to over 20 million active digital asset users who currently face challenges such as high transaction fees and regulatory uncertainty. The finance minister reiterated his commitment to fostering a transparent and well-regulated digital asset ecosystem. He directed relevant authorities to draft a comprehensive framework that ensures security, transparency, and economic viability while preventing financial crimes and illicit activities.
The meeting concluded with a consensus on adopting a cautious yet forward-thinking approach, ensuring that any regulatory developments align with Pakistan’s national interests, FATF guidelines, and international financial standards. As Pakistan moves toward formalizing its stance on cryptocurrencies, the establishment of a National Crypto Council could pave the way for a more structured and regulated digital asset industry, fostering innovation while maintaining necessary oversight.
