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By Malik Shahzad Aslam :
Pakistan’s push to regulate digital assets has entered a critical phase, with policymakers warning that delay could deepen risks in a rapidly expanding informal market already involving tens of millions of users.
Speaking at a leadership summit in Lahore, Bilal Bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority, said the country was no longer debating whether to regulate cryptocurrencies but how quickly it could act before the cost of inaction becomes unmanageable.
He revealed that around 40 million Pakistanis are already engaged in digital assets, largely through informal and unregulated channels. This vast user base, he warned, is operating without consumer protection, dispute resolution mechanisms or formal financial oversight, creating both a major economic opportunity and a systemic risk.
Saqib cautioned that every delay allows unregulated platforms many based Pakistan to strengthen their foothold. As users become accustomed to these systems, transitioning them to regulated alternatives becomes increasingly difficult, effectively forcing the government into a reactive position.
A key pillar of the government’s case for regulation is its potential impact on remittances. Pakistan receives roughly $38 billion annually from overseas workers, a vital lifeline for its economy. Officials argue that blockchain-based systems could make these transfers faster, cheaper and more transparent, reducing reliance on costly intermediaries and improving efficiency in foreign exchange inflows.
The proposed regulatory model will adopt a phased, risk-based approach, prioritising high-risk areas while allowing innovation through controlled environments such as regulatory sandboxes. One early focus will be asset-backed tokenisation, enabling fractional ownership of assets like real estate and potentially widening access to investment opportunities for smaller investors.
Saqib also linked clearer crypto regulation to Pakistan’s growing freelance sector, which has generated billions in IT exports. Streamlined digital payment mechanisms, including crypto-based channels, could ease cross-border transactions and enhance the country’s competitiveness in global digital services.
However, he identified a critical bottleneck: a shortage of skilled professionals. Without sufficient expertise in blockchain development, compliance, and digital asset law, even the most well-designed regulatory framework may struggle to function effectively. He called for collaboration between academia, industry and regulators to build the necessary talent pipeline.
The initiative aligns with recent steps by the State Bank of Pakistan and the government to formalise the sector through new legislation and institutional frameworks. Officials say the goal is not only to regulate but also to position Pakistan as an active participant in shaping global digital finance standards.
With millions already active in the space, the challenge for Pakistan is no longer adoption — it is governance.
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