Pakistan's government remains resolute in its opposition to cryptocurrencies, despite retail users turning to digital assets.
Pakistan’s Minister of State for Finance and Revenue Says Crypto Will ‘Never Be Legalized’
Pakistan's government remains resolute in its opposition to cryptocurrencies, despite retail users turning to digital assets to mitigate the devaluation of the Pakistani rupee amidst political turmoil. Minister of State for Finance and Revenue Aisha Ghaus Pasha declared that cryptocurrencies will “never be legalized” in Pakistan, citing the conditions set by the Financial Action Task Force (FATF) to keep the country off the FATF's "Grey List."
Pasha instructed the State Bank of Pakistan and the Information Technology Ministry to commence work on banning cryptocurrencies. Banks in Pakistan have already warned customers against engaging in cryptocurrency trading, despite the increasing popularity of digital assets in the country.
Political instability in Pakistan, including the arrest and subsequent release of former Prime Minister Imran Khan, has contributed to a tense environment. Amidst concerns of a sovereign default and limited access to physical US dollars due to import restrictions, Pakistani retail users are converting their salaries into stablecoins to hedge against further economic volatility. The annual trading volume for Pakistan-based wallets has risen to $25 billion, reflecting the growing demand for cryptocurrencies.
As Pakistan faces political and economic challenges, the government's stance on cryptocurrencies contradicts the country's emerging interest in digital assets and will shape the future of their adoption in the nation.
