Latest news with #FATF-compliant
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Business Standard
3 days ago
- Business
- Business Standard
Pakistan plans bitcoin reserve but govt says crypto still banned at home
In a high-profile presentation at the Bitcoin Vegas 2025 Conference, Pakistan took the global cryptocurrency community by surprise with an announcement to establish a state-backed Strategic Bitcoin Reserve, described as a symbolic step toward long-term engagement with decentralised finance. The declaration came from Bilal Bin Saqib, recently appointed as Special Assistant to the Prime Minister on Crypto and Blockchain with the status of a Minister of State. Saqib, also serving as CEO of the newly created Pakistan Crypto Council, made the announcement after delivering a keynote address attended by influential figures including US Vice President JD Vance, Eric Trump, and Donald Trump Jr. 'We want to thank the US because we are getting inspired from them,' Saqib said, directly tying Pakistan's crypto strategy to US President Donald Trump's pro-crypto stance. Is cryptocurrency legal in Pakistan? Government says no On May 30, Finance Secretary Imdadullah Bosal clarified before the National Assembly's Standing Committee on Finance and Revenue that cryptocurrency is not recognised as legal tender, citing guidance from the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP). 'There will be a legal framework only when the government formally takes a decision,' Bosal said, confirming that existing crypto activities remain unlawful pending legislative changes. Pakistan proposes national Bitcoin wallet and crypto mining plan Saqib had revealed plans for a national bitcoin wallet to hold digital assets 'already in state custody,' framed not as speculative investments but as part of a 'sovereign reserve' to signal Pakistan's commitment to digital finance. In a bid to attract international crypto capital and technology firms, Saqib also announced the allocation of 2,000 megawatts of surplus electricity in the initiative's first phase. This power will support bitcoin mining and AI data centres, opening what Saqib described as a 'new digital frontier' to global investors, sovereign miners, and clean energy partners. 'Pakistan is no longer defined by its past. It is being reborn as a forward-looking hub of digital innovation,' Saqib said in a statement from his office. 'If you're building something real, come build it in Pakistan.' What is the Pakistan Digital Assets Authority and what will it do? Although parallel to Saqib's overseas campaign, the Pakistani government moved to create the Pakistan Digital Assets Authority (PDAA) on May 22, to regulate and formalise crypto and blockchain technologies. According to official statements, PDAA aims to develop a FATF-compliant regulatory framework, oversee virtual asset service providers (VASPs), and integrate blockchain in land records, finance, and governance systems. The Finance Division said the broader strategy was designed to monetise surplus electricity, create high-tech jobs, attract billions in foreign direct investment, and generate substantial revenue for the state. Economists warn against speculative crypto strategy and public risk While the government pitches crypto as an avenue for digital growth and foreign investment, several Pakistani economists are expressing alarm at what they view as a risky pivot toward fictitious assets. While some of these moves appear geared toward influence-building in Washington—especially with figures close to the Trump administration taking an active interest in Pakistan's crypto developments—economists argue that when crypto is positioned as a serious business proposition by the government, it becomes dangerous because the resources being put at risk are public. One concern is the speculative nature of sovereign crypto holdings. Economists noted that suggestions to invest part of Pakistan's foreign exchange reserves in crypto mirror tactics used by speculative brokers, highlighting bitcoin's historic price rises without mentioning its extreme volatility. Bitcoin mining in Pakistan: Why are electricity subsidies raising questions? The government's allocation of 2,000 MW for bitcoin mining has also sparked scrutiny. Economists question why crypto miners should receive electricity at subsidised rates per unit, far below the rate paid by households and industry, calling the move 'puzzling and opaque.' Crypto, unlike traditional assets such as money or gold, remains largely a speculative construct with limited liquidity and broader systemic risks. Experts have likened it to previous financial bubbles built on fictitious assets, from plot file scams to the collateralised debt obligations (CDOs) that precipitated the 2008 global financial crisis.
Business Recorder
3 days ago
- Business
- Business Recorder
SBP, Finance ministry inform NA body: ‘Cryptocurrency is not legal in Pakistan'
ISLAMABAD: The State Bank of Pakistan (SBP) and the Ministry of Finance on Thursday disclosed that the cryptocurrency is not legal in Pakistan and trading of cryptocurrencies is not permitted in the country. Both the SBP and the Finance Ministry stressed the need for a robust legal framework for trading of cryptocurrency in the country. 'Presently, cryptocurrency is banned in Pakistan,' they added. This was disclosed by officials of SBP and Finance Ministry during the meeting of National Assembly Standing Committee on Finance on Thursday. Pakistan establishes Digital Assets Authority to regulate crypto, blockchain According to the SBP officials, 'the SBP in 2018 issued instructions to the banks to prohibit trading of cryptocurrency in the country. Till now, it is not a legal tender. The SBP has given its recommendations to the Crypto Council.' The secretary Ministry of Finance informed the committee that 'very preliminary work has been done regarding cryptocurrency, but we need a proper legal framework in this regard.' MNA Mirza Ikhtiar Baig said there is a perception among the people that Pakistan has adopted the cryptocurrency and people have started making investment in the cryptocurrency. MNA Sharmila Faruqui questioned the recent policy shift prioritising digital currencies without addressing the associated regulatory deficiencies. The secretary Ministry of Finance informed the committee that Pakistan has not shifted its policy stance towards virtual assets. Rather, it is considering virtual assets with cautious and forward-looking approach for an informed decision on prospects of regulatory enablement. Towards this end, Pakistan Crypto Council (PCC) has been constituted with representation from the SBP, the Securities and Exchange Commission of Pakistan (SECP), and the Ministry of Finance (MoF). Under the umbrella of PCC, stakeholders' discussions on the feasibility of regulatory framework for crypto currencies and virtual assets are under way. The PCC is also exploring the beneficial use-cases to support responsible innovation in this area. This initiative aligns with FATF Recommendation 15, which mandates regulation and supervision of Virtual Asset Service Providers (VASPs). Given the growing interest in crypto-related activities, it is critical for Pakistan to build necessary legal and regulatory capacity to remain FATF-compliant before embarking on this journey. The SBP and SECP have advised their regulated entities to refrain from processing, using, trading, holding, transferring value, promoting and investing in virtual currencies/tokens. Further, the regulated entities were advised not to facilitate their customers/account holders to transact in virtual currencies/ICO tokens. Any transaction in this regard shall immediately be reported to Financial Monitoring Unit (FMU) as a suspicious transaction. These directives were issued due to the risks including high price volatility, closure of virtual currency exchanges and possibility of wallets hacking as well as risk of capital flight and financial instability. Under the direction of the General Committee, a National Working Group, led by the FIA was constituted and they are currently working in this regard. Both the Crypto Council and the Working Group are actively engaged in developing policy recommendations for legal and regulatory framework for Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs). This process includes a thorough evaluation of the associated money laundering, terrorist financing (MUTE), and broader systemic risks. Given that virtual assets remain a rapidly evolving and inherently volatile domain, any potential future policy shift will be approached with the utmost caution. A structured and risk-based approach aligned with the 'Pakistan First' principle will guide any decision-making, ensuring that national financial security and regulatory readiness remain a priority. A multi-stakeholder consultative approach is being employed to ensure comprehensive risk management and policy cohesion. Recently, the government has formed PCC with the objective to have stakeholders' consultation on the feasibility of promoting responsible Innovation In digital assets under an appropriate regulatory framework. GoP has also hired technical experts for the PCC. The objective is to initiate a stakeholders' dialogue with crypto industry leaders to enhance the mutual understanding about the nature of the crypto/virtual assets, their business models, underlying technologies, and associated risks. Presently, Pakistan's legal framework on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) conforms to the international standards, particularly the Financial Action Task Force (FATF) Recommendations. Furthermore, Pakistan continues to engage with international partners i.e. FATF, APG and IMF to further strengthen its AML/CFT regime and ensure compliance and sustainability with global AMUCFT standards. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
SBP, Ministry inform NA body: ‘Cryptocurrency is not legal in country'
ISLAMABAD: The State Bank of Pakistan (SBP) and the Ministry of Finance, Thursday, disclosed that the cryptocurrency is not legal in Pakistan and trading of cryptocurrencies is not permitted in the country. Both the SBP and the Finance Ministry stressed the need for a robust legal framework for trading of cryptocurrency in the country. 'Presently, cryptocurrency is banned in Pakistan,' they added. This was disclosed by officials of SBP and Finance Ministry during the meeting of National Assembly Standing Committee on Finance on Thursday. Pakistan establishes Digital Assets Authority to regulate crypto, blockchain According to the SBP officials, 'the SBP in 2018 issued instructions to the banks to prohibit trading of cryptocurrency in the country. Till now, it is not a legal tender. The SBP has given its recommendations to the Crypto Council.' The secretary Ministry of Finance informed the committee that 'very preliminary work has been done regarding cryptocurrency, but we need a proper legal framework in this regard.' MNA Mirza Ikhtiar Baig said there is a perception among the people that Pakistan has adopted the cryptocurrency and people have started making investment in the cryptocurrency. MNA Sharmila Faruqui questioned the recent policy shift prioritising digital currencies without addressing the associated regulatory deficiencies. The secretary Ministry of Finance informed the committee that Pakistan has not shifted its policy stance towards virtual assets. Rather, it is considering virtual assets with cautious and forward-looking approach for an informed decision on prospects of regulatory enablement. Towards this end, Pakistan Crypto Council (PCC) has been constituted with representation from the SBP, the Securities and Exchange Commission of Pakistan (SECP), and the Ministry of Finance (MoF). Under the umbrella of PCC, stakeholders' discussions on the feasibility of regulatory framework for crypto currencies and virtual assets are under way. The PCC is also exploring the beneficial use-cases to support responsible innovation in this area. This initiative aligns with FATF Recommendation 15, which mandates regulation and supervision of Virtual Asset Service Providers (VASPs). Given the growing interest in crypto-related activities, it is critical for Pakistan to build necessary legal and regulatory capacity to remain FATF-compliant before embarking on this journey. The SBP and SECP have advised their regulated entities to refrain from processing, using, trading, holding, transferring value, promoting and investing in virtual currencies/tokens. Further, the regulated entities were advised not to facilitate their customers/account holders to transact in virtual currencies/ICO tokens. Any transaction in this regard shall immediately be reported to Financial Monitoring Unit (FMU) as a suspicious transaction. These directives were issued due to the risks including high price volatility, closure of virtual currency exchanges and possibility of wallets hacking as well as risk of capital flight and financial instability. Under the direction of the General Committee, a National Working Group, led by the FIA was constituted and they are currently working in this regard. Both the Crypto Council and the Working Group are actively engaged in developing policy recommendations for legal and regulatory framework for Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs). This process includes a thorough evaluation of the associated money laundering, terrorist financing (MUTE), and broader systemic risks. Given that virtual assets remain a rapidly evolving and inherently volatile domain, any potential future policy shift will be approached with the utmost caution. A structured and risk-based approach aligned with the 'Pakistan First' principle will guide any decision-making, ensuring that national financial security and regulatory readiness remain a priority. A multi-stakeholder consultative approach is being employed to ensure comprehensive risk management and policy cohesion. Recently, the government has formed PCC with the objective to have stakeholders' consultation on the feasibility of promoting responsible Innovation In digital assets under an appropriate regulatory framework. GoP has also hired technical experts for the PCC. The objective is to initiate a stakeholders' dialogue with crypto industry leaders to enhance the mutual understanding about the nature of the crypto/virtual assets, their business models, underlying technologies, and associated risks. Presently, Pakistan's legal framework on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) conforms to the international standards, particularly the Financial Action Task Force (FATF) Recommendations. Furthermore, Pakistan continues to engage with international partners i.e. FATF, APG and IMF to further strengthen its AML/CFT regime and ensure compliance and sustainability with global AMUCFT standards. Copyright Business Recorder, 2025
&w=3840&q=100)
First Post
4 days ago
- Business
- First Post
7 things about Bilal Bin Saqib, the man behind Pakistan's big Bitcoin bet
Here are 7 things to know about Bilal Bin Saqib, Pakistan Crypto Council (PCC) Chief Executive Officer and the man behind Islamabad's big Bitcoin bet read more On Thursday, Pakistan unveiled the cash-strapped nation's first government-led Strategic Bitcoin Reserve. The launch came just days after the country's Prime Minister, Shehbaz Sharif, appointed Pakistan Crypto Council (PCC) Chief Executive Officer Bilal Bin Saqib as his special assistant on blockchain and cryptocurrency. Saqib was also given the status of Minister of State. With its latest endeavour, Pakistan is seeking to lure American investment, given US President Donald Trump's inclination towards cryptocurrency. While delivering an address at Bitcoin Vegas 2025, in front of United States Vice President JD Vance, Eric Trump and Donald Trump Jr, Saqib spoke about the country's latest endeavour, Dawn reported. STORY CONTINUES BELOW THIS AD 'Pakistan is no longer defined by its past. It is being reborn as a forward-looking hub of digital innovation — powered by its youth, sharpened by necessity, and led by a new generation of tech statesmen,' said Saqib, in a statement issued by his office. 'I'm not just here as a minister,' he said. 'I'm here as the voice of a generation — a generation that is online, on-chain, and unstoppable," he said during the event. Here's everything you need to know about the man at the centre of Pakistan's crypto push. 7 things to know about Bilal Bin Saqib Saqib is the founder of Tayaba, a social enterprise that aims to provide solutions to the water crisis in Pakistan. One of the initiatives of his company was the 'H2O wheel,' which is a plastic wheel container connected to a metal bar that helps to reduce the burden on women and children who carry water in rural Pakistan. His company turned out to be a success, distributing 5,500 H2O wheels in Pakistan. As per the government press release, in his new role, Saqib will be responsible for developing a comprehensive, FATF-compliant regulatory framework for digital assets. He will also be responsible for launching Bitcoin mining initiatives and overseeing blockchain integration in governance, finance, and land records, Dawn reported. Saqib was part of the '30 under 30' list in the year 2020. He received his MBE in 2023 for contributions to the UK's National Health Service. It is pertinent to note that MBE stands for 'Member of the Most Excellent Order of the British Empire," and is awarded to those who provide outstanding service to the community. According to Dawn, Pakistan currently has 40 million crypto users and an annual crypto trading volume of over $300 billion. 'Pakistan's unique demographic and digital landscape offers an unprecedented opportunity to leapfrog into the future of technology, where blockchain and crypto will drive economic growth, innovation, and global competitiveness," Saqib said at the Vegas event.
Express Tribune
6 days ago
- Business
- Express Tribune
Saqib appointed SAPM on blockchain, crypto
Prime Minister Shehbaz Sharif raised the number of his cabinet members to 55 on Monday by appointing Bilal Bin Saqib as his special assistant on blockchain and cryptocurrency, with the status of a state minister. The appointment comes just weeks after Saqib was named chief advisor to the finance minister for the Pakistan Crypto Council (PCC), where he also serves as the Chief Executive Officer (CEO). According to a statement, Saqib's responsibilities will include developing a comprehensive, FATF-compliant regulatory framework for digital assets, launching Bitcoin mining initiatives, and overseeing blockchain integration in governance, finance, and land records.
