Pakistanis have invested between $20–25 billion in crypto, even though the government banned digital currencies in 2018. This places Pakistan among the top ten countries globally for crypto activity, highlighting a strong local interest despite legal restrictions.
At a recent Pakistan Business Council conference in Islamabad, experts discussed the rise of crypto and its impact on the economy. Dr. Asad Samar, CEO of Square Point Trading Group, explained how blockchain technology enables secure, peer-to-peer transactions without banks or central authorities. Miners validate transactions and are rewarded in cryptocurrency.
Initially created as a payment system, crypto has evolved into multiple forms. Bitcoin, for example, has grown from $500–$700 per coin in 2016 to over $100,000 today. Thousands of other digital coins now serve diverse purposes, including gaming tokens, tokenized assets, and financial tools, making crypto both an investment and a technological innovation.
Globally, the crypto market has matured. Exchanges and professional traders now handle enormous volumes, rivaling traditional financial markets. Platforms like Exness allow both retail and institutional investors to access crypto safely. Experts say regulation will further strengthen the market.
In Pakistan, the unregulated crypto market exposes investors to risks like fraud, hacking, and sudden price fluctuations. Reports suggest losses of nearly 600 billion rupees over the past year. Experts argue that banning crypto is ineffective and that regulation could protect investors and generate tax revenue.
Proposed steps include licensing local exchanges, limiting tradeable coins, and monitoring capital flows. The formation of a Pakistan Crypto Council and a potential regulatory authority, modeled on UAE’s VARA, are seen as positive moves toward formalizing the market.
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Despite legal restrictions, crypto in Pakistan continues to grow. Analysts recommend clear regulations to protect investors, control illicit activities, and allow the country to benefit from this booming sector.
