Members of the National Assembly’s Standing Committee on Finance expressed serious reservations on Thursday over the increasing public interest in cryptocurrency in Pakistan and its issuance despite it being illegal, warning of financial risks and regulatory confusion.

The committee, chaired by MNA Nafisa Shah, was surprised to learn that cryptocurrency remains banned in Pakistan, even though the government had formed a "crypto council" — leading to mixed reactions.

Finance Secretary Imdadullah Bosal briefed the committee that cryptocurrency is still banned and illegal in Pakistan and only the council had been formed. The State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) have not lifted their bans on crypto trading, he added.

He clarified that the recently formed Pakistan Crypto Council, created under an executive order of the prime minister, is a preliminary body tasked with developing a framework -- not a regulatory authority.

“The work regarding cryptocurrency is still in its initial stage,” he said, adding that a legal and regulatory framework is yet to be drafted and will require parliamentary approval for any institution to be established about it. "Only when the government takes a decision will the regulatory framework be formed."

SBP officials told the committee that cryptocurrency was still banned in Pakistan, and is not legal tender money in Pakistan. The FBR chairman told the committee that the council was like a task force and had been given a very preliminary task.

MNA Sharmila Faruqui strongly opposed any premature promotion of crypto, citing threats of money laundering, terror financing, and tax evasion. She said, “There is no regulatory framework yet, and people are being misled into believing crypto is legalized.”

Committee member Mirza Ikhtiar Baig criticized the government’s contradictory actions. “On one hand, you’re saying crypto is banned, and on the other, you’ve allocated 2000 megawatts of electricity for it?” he questioned. “People are being lured into investing. If crypto is not accepted tomorrow, their money will vanish.”

Also Read: Pakistan launches nation’s first strategic Bitcoin reserve

He further said that investment in cryptocurrency was also likely to cause major losses, adding that people should be told to invest in it at their own risk. He called for issuing a statement that cryptocurrency is still going through the legal framework.

Chairperson Nafisa Shah added that crypto has been considered a commodity globally, and not a legal tender. Members called for greater transparency and public awareness, urging that the government issue a clear statement about crypto’s current legal status to avoid misleading investors.

MNA Shahram Tarakai warned that if the government does not act now, “billions of dollars will leave the country through cryptocurrency, and later the government will be left asking what went wrong.”

The committee unanimously decided to summon the chairman and members of the Pakistan Crypto Council for a detailed briefing in the next session, seeking clarity on the future direction of crypto regulation in the country.

On the other hand, Pakistan has announced the country’s first strategic Bitcoin reserve. The announcement was made by Special Assistant to the Prime Minister for Crypto and Blockchain, Bilal bin Saqib, during the Bitcoin Vegas 2025 conference in Las Vegas, US.

Addressing the international audience, Bilal bin Saqib highlighted Pakistan’s youthful demographic and growing presence in the crypto space. “Our youth are online and on-chain. Pakistan, with over 40 million crypto wallets and an average age of 23 years, is now being recognised for its future rather than its past,” he said.