Latest news with #PakistanCryptoCouncil
Arab News
19 minutes ago
- Business
- Arab News
New virtual assets regulator tops agenda as Pakistan crypto council meets today
KARACHI: Pakistan plans to establish a regulatory body to oversee digital assets, with the proposal set to be at the top of the agenda of a meeting today, Monday, of the Pakistan Crypto Council (PCC), the finance ministry said. Pakistan set up the PCC in March to create a legal framework for cryptocurrency trading in a bid to lure international investment. In April, Pakistan introduced its first-ever policy framework, created by a special government group under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority, to set rules for how digital money like cryptocurrencies and the companies that deal in it should operate in Pakistan. The policy has been formulated to align with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF). Last month, the government also approved setting up the Pakistan Virtual Assets Regulatory Authority (PVARA), a specialized regulatory body to oversee blockchain-based financial infrastructure. 'The Pakistan Crypto Council will convene a high-level meeting on Monday, 2nd June 2025, to be chaired by Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue,' the ministry said in a statement. Aurangzeb is also the chairperson of the PCC. 'Key items on the agenda include the development of a robust regulatory framework to govern digital and virtual assets in Pakistan, in alignment with global standards and technological advancements,' the statement added. 'A focal point of discussion will be the groundwork for the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) — a proposed autonomous body to oversee the digital finance and crypto ecosystem in the country.' Earlier this month, Pakistan announced the allocation of 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power bitcoin mining and artificial intelligence data centers. The allocation is the first phase of a broader, multi-stage digital infrastructure roll-out. Last week, Bilal Bin Saqib, the CEO of the Pakistan Crypto Council, unveiled the country's first government-led strategic bitcoin reserve at the Bitcoin 2025 conference in Las Vegas. The central bank said last week it had not declared virtual assets illegal but had in 2018 advised regulated entities to avoid dealing in virtual assets 'due to the absence of any legal and regulatory framework.' 'This was done to protect its regulated entities and their customers from the risks emanating due to the absence of legal and regulatory framework for VAs in the country,' the central bank said in a statement. 'The SBP and Finance Division are currently engaged with the Pakistan Crypto Council established by the Federal Government for, among others, developing an appropriate legal and regulatory framework for VAs in Pakistan. We understand that the legal and regulatory framework would provide the requisite clarity and legal coverage about the VAs ensuring consumer and investor protection.'
Business Recorder
7 hours ago
- Business
- Business Recorder
Legal gaps in crypto adoption
EDITORIAL: Pakistan's push to embrace cryptocurrency has seen the government take a host of measures over the last few months to promote the adoption of digital assets like Bitcoin. From the establishment of the Pakistan Crypto Council and appointing entrepreneur Bilal bin Saqib as its CEO with the status of minister of state, to allocating 2,000MW of surplus electricity for Bitcoin mining and the finance minister's declaration that Pakistan wishes to be a leader in this space, all reflect a coordinated effort to position the country at the forefront of the digital economy. What completely boggles the mind, however, is that amid this enthusiastic drive for crypto adoption, one basic fact has been persistently overlooked: cryptocurrency remains illegal in Pakistan. All transactions involving such assets are prohibited under current regulations, and anyone dealing in these currencies is liable to be investigated by the Financial Monitoring Unit and the FIA. This was made clear in no uncertain terms by senior officials of the State Bank of Pakistan and the finance ministry during a meeting of the National Assembly's Standing Committee on Finance and Revenue on May 29. Finance Secretary Imdadullah Bosal's categorical statement that 'crypto is not a legal tender in Pakistan' is something that casts a long shadow over the government's recent actions in this space. It highlights a shocking lack of policy coherence and prompts broader questions about the prudence of promoting crypto initiatives without first putting in place a clear legal framework. The result is a climate of confusion and uncertainty, leaving investors, regulators and the public unsure of the government's true policy direction and intent behind these contradictory signals. While some of the government's moves in this space may be seen as attempts to garner influence with the Trump Administration, which includes strong advocates of cryptocurrency, its actions appear to go beyond merely symbolic gestures. At the recent 2025 Bitcoin Conference held in Las Vegas, for instance, Bilal bin Saqib unveiled Pakistan's first government-led Strategic Bitcoin Reserve, intended to hold digital assets in state custody as a sovereign reserve. This, along with other initiatives, suggests a clear intent to integrate crypto into national economic strategy despite the legal and regulatory contradictions, and the inherent risks of embracing an asset class, which thus far has been known for its volatility, lack of effective oversight mechanisms and susceptibility to speculative bubbles. The fact of the matter is that cryptocurrency is not considered legal tender in most countries of the world, including in the US. There is still little regulatory clarity to the cryptocurrency space in most jurisdictions, with it long having operated on the fringes of the mainstream global financial system due to its volatile nature, resistance from central banks and limited mainstream adoption by businesses. This is not to say that cryptocurrencies cannot achieve legitimate adoption in a safe and regulated manner that preserves financial stability. But for that to happen, governments would need to establish clear regulatory frameworks that address consumer protection, financial stability risks and anti-money laundering concerns while fostering innovation. In Pakistan's case, crypto adoption demands carefully crafted regulations that balance risk — particularly regarding capital flight — with opportunities for financial inclusion and improved remittance flows. Given our fragile economic position and IMF commitments, we must proceed cautiously by first establishing a clear regulatory framework developed through collaboration between blockchain specialists, technologists and economic managers who understand both our economic challenges and risks of crypto adoption. The current approach of haphazard adoption without proper legal safeguards creates dangerous uncertainty: it encourages public investment in an illegal asset class, exposing citizens to potential legal consequences, and leaves our economy vulnerable to capital flight and money laundering risks. The government must rethink this blind embrace of crypto and first build legal guardrails before proceeding further. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Business
- Express Tribune
Pakistan's crypto bet: digital dream or power misstep?
On May 25, 2025, Pakistan's Finance Ministry threw open the gates to a digital frontier, allocating 2,000 megawatts (MW) of electricity — enough to power 1.5 million homes — to Bitcoin mining and AI data centers. Championed by the Pakistan Crypto Council (PCC), this plan seeks to harness surplus power, lure foreign investors, and create tech jobs, riding the wave of Pakistan's 40 million crypto users and its ninth-place ranking in Chainalysis' 2024 Crypto Adoption Index. But in a nation where load-shedding once left families cooking by candlelight, diverting power to crypto farms while rural grids flicker ignites a fierce debate: is this a bold stride into the digital age or a reckless move that leaves Pakistan's people in the dark? Let's unpack crypto mining, its mechanics, and whether Pakistan can balance tech ambition with human needs. Digital gold with a steep power bill Crypto mining fuels currencies like Bitcoin, but its hunger for electricity puts Pakistan at a pivotal juncture. Picture a global ledger, open to all, recording every Bitcoin transaction — Ali paying Zara 0.1 BTC — without a bank's oversight. Miners deploy high-powered computers to solve cryptographic puzzles, ensuring no one double-spends their coins. In Bitcoin's Proof of Work system, the first to crack the puzzle earns 3.125 Bitcoins per block, worth $340,000 at May 2025's $109,000 per BTC. The rub? Mining rigs are energy hogs, with global operations burning 160 terawatt-hours annually, per the Cambridge Bitcoin Electricity Consumption Index, matching Poland's power usage. In Pakistan, 2,000 MW could run thousands of rigs, each guzzling as much juice as three air conditioners. With 40 million crypto users, Pakistan's poised to turn digital coins into real wealth, potentially netting $1 billion a year. Yet, with 25% of rural households lacking reliable power, per the Pakistan Economic Survey 2023–24, prioritising miners risks public backlash. But can crypto trump basic needs? Pakistan must weigh whether digital riches justify the social and environmental costs, or if this bet will widen existing divides. How crypto mining works Mining's mechanics reveal why it's a tech marvel and a power drain; a duality Pakistan must navigate. Miners collect pending transactions, bundle them into a block, and run them through the SHA-256 algorithm, guessing a random 'nonce' to produce a hash with specific leading zeros. It's like scouring a K2-sised haystack, requiring billions of calculations per second. The winner adds their block to the blockchain, pockets the reward, and the race resets every 10 minutes, with difficulty adjusting biweekly. A single Bitmain Antminer S19 Pro uses 3,250 watts; a farm of thousands could devour Pakistan's 2,000 MW allocation. Bitcoin mining relies on energy-intensive processes to secure its trust less network, but in Pakistan, it's already drawing backlash. The perception that miners receive uninterrupted, subsidised electricity while rural areas endure four-hour outages fuels resentment. While the government's phase two renewable energy plan offers some hope, the coal-heavy phase one — with inefficient plants like Sahiwal operating at just 60% — threatens to lock in pollution. Without a decisive shift toward clean energy, this digital leap risks deepening inequality and environmental harm. Surplus power, persistent struggles Pakistan's energy sector is a riddle wrapped in a crisis, making the crypto bet a high-stakes gamble. The country generates up to 10,000 MW of surplus power in winter, driven by coal plants like the 1,320 MW Sahiwal and Port Qasim facilities, locked into take-or-pay contracts costing $1.2 billion annually for unused capacity, per the Pakistan Economic Survey 2023–24. High tariffs — 35 PKR/kWh (12 cents) — have driven 113,000 households to solar and net-metering, per NEPRA, slashing grid demand by 1,500 MW. The PCC sees this surplus as a goldmine: 2,000 MW for mining and AI could yield $1 billion yearly at 10 cents/kWh, draw $2–3 billion in FDI (based on Kazakhstan's 2021 peak), and leverage the Africa-2 cable's 180 terabits/second to position Pakistan as a data hub. Tax breaks and the PDAA add allure. Coal's continued dominance adding an estimated 4–5 million tons of CO2 annually intensifies Pakistan's already dire air quality crisis. In winter 2024, Lahore's Air Quality Index soared to 180, underscoring the environmental costs of fossil fuel dependence. Public frustration is mounting, with critiques emerging across media platforms and urging the government to commit to a 2030 renewable energy target. The irony is hard to ignore: while Pakistan sits on a massive 104,000 MW hydropower potential, only about 10% of it is currently harnessed, according to WAPDA. Redirecting energy toward crypto mining while millions still face rolling blackouts risks undermining public trust. The broader question is one of priorities; should limited energy resources be used to power digital assets or to close Pakistan's widening electricity access gap? For the energy transition to be credible and inclusive, surplus generation must be channelled toward long-term development goals, not just short-term profit. Deepening inequality? Pakistan's energy shortfalls, especially in rural areas, make the government's 2,000 MW allocation for crypto mining hard to justify. In 2023, rural communities endured daily outages stretching up to 12 hours, and in provinces like Balochistan, where only 40% of households are even connected to the grid, the frustration runs deep. The optics of uninterrupted electricity for crypto farms while millions struggle with basic access are politically and socially fraught. A parallel can be drawn with Nigeria's 2021 crypto surge, where miners' use of private generators drove up fuel prices and stoked public anger. The same resentment is brewing here. According to NEPRA's 2024 report, rural electricity demand is growing at 3% annually — and the 2,000 MW earmarked for mining could power 1.5 million homes instead. Criticism is gaining traction in public discourse, where voices from underserved regions argue that national priorities seem misaligned. The message is clear: people need reliable lighting, not digital ledgers. Yet, Pakistan's 10,000 MW surplus, unlike Nigeria's 7,000 MW deficit, offers breathing room. Net-metering's 1,500 MW relief could free power for mining without cuts, potentially funding grid upgrades. The hurdle is perception: if miners seem to hog power, resentment could erupt. Pakistan must prioritise rural electrification — perhaps via solar microgrids serving 500,000 homes by 2030 — to prove it values people over pixels. Global playbook: blueprints and blunders The world's crypto experiments offer Pakistan a roadmap and a minefield. El Salvador's geothermal Bitcoin mining, launched in 2021, has minted 2,000 Bitcoins ($218 million) by 2025, strengthening reserves without grid strain. Iceland powers 8% of global Bitcoin mining with geothermal and hydro at 2–4 cents/kWh, attracting firms like Bitfury. Bhutan, a lesser-known player, mines Bitcoin with 3,000 MW of hydropower, exporting $100 million in crypto revenue in 2024, per Reuters, without disrupting its 750,000 citizens. Kazakhstan's 2021 $1.5 billion mining boom crashed amid 7,000 MW shortages, and Iran's 2020 2,000 MW mining push triggered blackouts, costing $500 million, per Bloomberg. These examples drive home a tough but important lesson: crypto mining can't be divorced from a country's energy and governance realities. Nations like El Salvador, Iceland, and Bhutan succeeded because they aligned mining with abundant renewable resources — geothermal, hydro, and solar. Meanwhile, Kazakhstan and Iran went all-in on fossil fuels and paid the price: blackouts, public backlash, and wasted investment. Pakistan appears to be edging toward the latter path, given its coal-heavy energy mix. If it doesn't pivot soon, it could face the same fallout as Iran. But there's a way out — Pakistan has massive untapped renewable potential: an estimated 50,000 MW in wind and over 100,000 MW in hydro. Tapping into that, alongside enforcing clear, future-proof regulations through the proposed PDAA framework, could help Pakistan avoid the pitfalls that dragged Kazakhstan into regulatory chaos. The bottom line? The energy source you choose — and how you govern it — will either power a digital leap or spark a crisis. The payoff: tech revolution on the horizon Pakistan's crypto bet could reshape its economy, but it demands surgical precision. Cheap power (4–6 cents/kWh vs. India's 15 cents) positions Pakistan to lure $2–3 billion in FDI, with a multiplier effect creating 10,000 jobs per $1 billion invested, per a 2024 ADB study. The PCC's promise of IT and engineering jobs targets 8.5% youth unemployment, with 60% of Pakistanis under 30. The PDAA's asset tokenisation, digitising farmland or SMEs could bank 100 million unbanked, mirroring India's 8% IT growth via tech training. The Africa-2 cable, linking 33 countries, gives Pakistan an edge over Singapore's land constraints which holds the potential that Pakistan could be crypto's Dubai. Still, there's a real danger that this so-called digital revolution could leave millions behind. According to a 2024 World Bank report, only 20% of rural Pakistan currently has access to high-speed internet, and nearly 70% of rural youth lack the digital skills needed to participate in emerging tech sectors. Without serious intervention, the benefits of blockchain and Web3 are likely to be captured by urban elites, deepening the existing digital and economic divide. Initiatives like proposed blockchain training centers in Punjab and Sindh — which aim to equip 100,000 youth with relevant skills by 2030 — could be a crucial equaliser. But if these programs stall or fail to scale, rural communities will once again be locked out of the future. It's not just about infrastructure — it's about inclusion. A digital economy that doesn't invest in its most disconnected populations risks becoming a lopsided success story: shiny on the surface, but hollow at its core. The perils: a nation at risk of division However, several risks could undermine this vision. For one, coal-powered crypto mining could add an estimated 4–5 million tons of CO₂ emissions annually — on top of Pakistan's already staggering 90 million tons in 2023 — further exacerbating the country's severe air pollution crisis. According to a 2024 WHO estimate, smog-related illnesses contribute to nearly 10,000 premature deaths each year. Civil society voices have already begun raising concerns. But there have been voices which are critical and asking if we are choking for Bitcoin? This exactly is a reflection of growing public unease. Meanwhile, critics argue that favouring mining infrastructure over basic rural electrification is shortsighted, especially given that 70% of rural youth lack basic digital skills. History offers a warning: China's 2021 crypto mining ban led to a $10 billion investment loss, while Iran lost $500 million. With only 20% of rural Pakistan connected to the internet, the digital divide could widen into a full-blown development gap, leaving millions further behind. This is Pakistan's high-wire act: innovation versus fairness. If mining enriches Karachi while Balochistan stays dark, it's a recipe for unrest. The government must weave rural communities into this digital tapestry, or the threads will unravel. Seizing the moment, dodging the traps Pakistan's crypto bet could catapult it into the digital age, but the pitfalls are steep. Training 100,000 youth in blockchain and AI by 2030 could turn Pakistan's 60% under-30 population into a tech powerhouse. Sindh's 50,000 MW wind, 1,000 MW solar, and 104,000 MW hydro potential could make Pakistan a green mining leader, drawing ESG investors wary of coal's fallout. The Africa-2 cable positions Pakistan to outshine Singapore, but execution is everything. But access and connectivity are also important; the demand to have access to 5G technology in rural areas to close the 80% connectivity gap is also legitimate. Policies like solar microgrids for 500,000 homes and tax-funded tech academies to mirror India's IT boom. The structural pitfalls of this strategy are increasingly hard to ignore. Lack of transparency in resource allocation has already raised alarm, with energy policy critics questioning how decisions are made and who stands to benefit. But regarding who picks the winners highlights the public's growing scepticism about elite capture and favouritism in energy investments. Delaying a transition to renewables beyond 2030 doesn't just risk environmental fallout; it could expose Pakistan to future trade sanctions and global isolation as climate accountability becomes stricter. Continued coal reliance is already exacting a human toll. Moreover, sidelining rural regions from the digital economy risks cementing a digital caste system, where unequal access to infrastructure reinforces long-standing economic divides. To truly future-proof its development, Pakistan must commit to public audits of energy investments, set a firm green energy deadline for 2030, and prioritise expanding 5G coverage to at least 50% of rural areas by 2028. Without these structural reforms, the current vision may end up being more of a gamble than a strategy — one that places the country's environmental, economic, and social future at considerable risk. Power for all, not just the blockchain Pakistan's 2,000 MW crypto venture could mint wealth, spark jobs, and plant the nation on the global tech map. But in a country where power cuts once defined life, every megawatt diverted to miners must answer to the people. By racing to renewables, training rural youth, and embracing transparency, Pakistan can make this a national triumph, not an urban elite's windfall. The stakes are sky-high, and the world's watching: will Pakistan light up its future or leave its people in the shadows? Ali Asad Sabir is working as project manager at Mahbub ul Haq research centre at Lahore University of Management Sciences (LUMS) All facts and information are the sole responsibility of the author
Indian Express
a day ago
- Business
- Indian Express
Inside Track: Pak's PR Plus
Pakistan Crypto Council CEO Bilal bin Saqib is modest in claiming that Pakistan is a victim of bad PR. His country has an old tradition of outdoing India in the hospitality sector for influential state guests. For decades, Indian ambassadors have complained about their pitiful entertainment allowances compared to the lavish budgets of their Pakistani counterparts. The Pakistanis leave no stone unturned in entertaining VVIP foreign guests, from commandeering heritage monuments for throwing dinners to organising falconry and hunting parties of protected species for Middle East royalty. The Pakistani intelligentsia with aristocratic bloodlines and Oxbridge backgrounds have significant clout in Western liberal circles, including think tanks, NGOs, universities and diplomatic parties. Modi's India, painted by Pakistan as an illiberal democracy encouraging Hindutva zealots, is not a favourite in such company. (Ironically, during Operation Sindoor dissenting views within India reflected its plurality, while the Pakistani intelligentsia spoke in one voice while backing its military dictatorship against terror sponsorship charges). One biased American legacy newspaper judged the military success of the two countries in the four-day war at par, even while displaying satellite imagery demonstrating extensive damage to Pakistani air bases and displaying no evidentiary proof of major destruction on the Indian side. In a bid to counter false propaganda, a senior official recently gave Indian MPs on the diplomatic outreach tours a breakdown of the relatively minor Indian losses. Realisation has dawned that in the absence of official information, Pakistani, Turkish and Chinese WhatsApp messages went to town spreading misinformation. When Trump was elected, we assumed that he had a soft corner for India as a counter to China, particularly as some key Trump appointees have India ties. But his recent statements on India appear rather unfriendly, possibly because India, unlike Pakistan, is unwilling to give Trump credit for brokering a ceasefire and accepting tariff rates as a bargaining chip. The Modi government has finalised at great expense a former Trump aide as a lobbyist for India. Pakistan has a different strategy. In January, Donald Trump Junior's college friend and hunting buddy Gentry Beach was hosted by the Pakistan PM in both Islamabad and Dubai, and was reportedly promised lucrative deals for the Trump business empire. Beach also visited Bangladesh and Turkey. Just after the April 22 terrorist attack, Pakistan signed a crypto deal with World Liberty Financial, a crypto currency firm in which the Trump family has a major stake. Apart from Trump's mercurial temperament and business interests, another reason for the slight trust deficit in Indo-US relations is that Trump has yet to appoint key officials to liaise with India. A US ambassador to India has not been named. The post of US Assistant Secretary of State for South and Central Asia is vacant. Ricky Gill, a relatively junior officer in the National Security Council, is presently the only White House official directly dealing with India. Supriya Sule's appointment as the head of one of India's diplomatic outreach teams and her recent meeting with PM Modi is significant. Sule was always the stumbling block in the NCP aligning with the BJP. Even when Ajit Pawar and most of the party defected, Sule persuaded Sharad Pawar to stay back. Pawar Senior desires a Cabinet berth for his daughter at the Centre. Modi would welcome the support of Pawar's 8 MPs. He realises Pawar's few MLAs are keen to join the government since they complain that their constituencies are starved of central funding because they are in the Opposition. In a new twist, Ajit no longer wants his uncle's NCP to merge with his wing of the party. Ajit's wife is still smarting from her defeat to Sule in the Baramati Lok Sabha poll. A pragmatic solution to get around Ajit's opposition is for Pawar's NCP to join the NDA directly. The BJP is treading cautiously since Sule has a history of persuading her father to run from the altar just when the marriage is about to be formalised. Shashi Tharoor's selection as head of one of the parliamentary teams to present India's case on the war on terrorism is masterful on two counts. Tharoor, who met Prime Minister Modi before his foreign tours, is the most seasoned, skilled and well-networked diplomat in the group, and is already making waves. Congresspersons sourly question his motives in unequivocally applauding the Modi government. Tharoor confessed to a friend it is one thing to be ignored by Rahul Gandhi, but when the entire Congress unit in Kerala, taking its cue from K C Venugopal, gives him the short shrift, what future does he have in the party?
Business Recorder
2 days ago
- Business
- Business Recorder
Pakistan Crypto Council's meeting on Monday
ISLAMABAD: The Pakistan Crypto Council will convene a high-level meeting on Monday, 2nd June 2025, to be chaired by Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue. The meeting will serve as a strategic forum to deliberate on the evolving regulatory and legal framework surrounding digital currency and the broader crypto landscape in Pakistan. Bilal Bin Saqib, Minister of State/Special Assistant to the Prime Minister on Blockchain and Crypto, will participate in his capacity as the chief executive officer of the Pakistan Crypto Council. The meeting will also be attended by members of the council, including the governor, State Bank of Pakistan (SBP); chairman, Securities and Exchange Commission of Pakistan (SECP); secretary, Law and Justice Division; and secretary, Ministry of Information Technology and Telecommunication. Key items on the agenda include the development of a robust regulatory framework to govern digital and virtual assets in Pakistan, in alignment with global standards and technological advancements. A focal point of discussion will be the groundwork for the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) — a proposed autonomous body to oversee the digital finance and crypto ecosystem in the country. The council aims to lay the foundation for a secure, transparent, and innovation-friendly regulatory environment, with a view to promoting responsible adoption of blockchain technology, protecting investors, and enhancing financial inclusion. Copyright Business Recorder, 2025
