On March 14, 2025, Pakistan officially launched the Pakistan Crypto Council (PCC), marking a significant step toward regulating and integrating blockchain technology and digital assets into the nation’s financial system.
Leadership and Structure:
- Chairperson: Finance Minister Muhammad Aurangzeb has been appointed as the chair of the PCC.
- Chief Executive Officer (CEO): Bilal Bin Saqib serves as the CEO, providing strategic direction to the council’s operations.
- Governing Board Members: The council includes key officials such as the Governor of the State Bank of Pakistan, the Chairman of the Securities and Exchange Commission of Pakistan (SECP), and the Federal Law and IT Secretaries. This composition underscores the collaborative approach between financial and technological sectors to ensure comprehensive oversight.
Mandate and Objectives:
The PCC is tasked with:
- Regulatory Development: Formulating clear guidelines and policies for the adoption and regulation of cryptocurrencies and blockchain technologies within Pakistan.
- Innovation Promotion: Collaborating with fintech startups, blockchain developers, and financial institutions to foster innovation and position Pakistan competitively in the global digital finance landscape.
- Financial Stability and Security: Ensuring that the integration of digital assets contributes to financial stability while implementing measures to protect investors and prevent illicit activities.
International Collaboration:
The establishment of the PCC aligns with recommendations from international bodies such as the International Monetary Fund (IMF), which has advocated for expanding tax frameworks to include the digital assets industry. This initiative reflects Pakistan’s commitment to embracing technological advancements while adhering to global financial standards.
By launching the Pakistan Crypto Council, the government demonstrates its dedication to navigating the complexities of digital finance, balancing innovation with regulation to create a secure and dynamic financial ecosystem.
It was published in Dawn on March 16th, 2025:
The Pakistan Crypto Council has been formed as promised, mere weeks after a delegation representing American interests in cryptocurrency and blockchain technologies called on Finance Minister Muhammad Aurangzeb to hawk its wares. According to a press handout, the PCC will oversee the regulation and integration of blockchain technology and digital assets into the country’s financial landscape. The Finance Division has declared the PCC a “significant step in the country’s efforts to regulate and integrate blockchain technology and digital assets into its financial landscape” while promising that “The council is set to play a pivotal role in formulating policies, fostering innovation, and ensuring a secure and forward-thinking approach to crypto adoption in Pakistan”. It sounds wonderful on paper, but the proof of the pudding is in the eating. After all, the state is still quite devoted to the idea of centralised control and conducting its business on paper, while the financial system remains tightly regulated. It will be interesting to see how disruptive technologies like blockchain and cryptocurrencies can be adopted in such an environment.
Criticism from Muslim Scholars:
The permissibility of cryptocurrencies within Islamic finance has been a subject of debate among Muslim scholars. Some scholars argue that cryptocurrencies are haram (prohibited) due to their speculative nature, potential for illicit use, and lack of intrinsic value. For instance, the Turkish Directorate of Religious Affairs (Diyanet) has issued a negative opinion on cryptocurrencies, questioning their compliance with Islamic financial principles. Crypto Data Space
Conversely, other scholars believe that cryptocurrencies can be considered halal (permissible) if they adhere to Islamic guidelines, such as ensuring transparency and avoiding interest (riba). This divergence in opinions reflects the ongoing discourse within the Muslim community regarding the legitimacy of digital currencies. Crypto Data Space+1Home — Islamic Finance Guru+1
Global Criticism of Cryptocurrencies:
Beyond religious considerations, cryptocurrencies have faced various criticisms on a global scale:
- Environmental Concerns: The energy-intensive process of mining cryptocurrencies, particularly Bitcoin, has raised alarms about its environmental impact. The significant electricity consumption contributes to carbon emissions and poses challenges to sustainable energy goals. Profolus
- Association with Illicit Activities: The anonymity and decentralization of cryptocurrencies have been linked to their use in illegal transactions, including money laundering, drug trafficking, and other illicit financing activities. This association has led to calls for stricter regulation and oversight. Eurasia Review
- Market Volatility: Cryptocurrencies are known for their price volatility, leading to concerns about their reliability as a stable store of value. For example, in 2025, while gold surged to an all-time high, Bitcoin experienced significant fluctuations, deterring institutional investors seeking stability. Financial News London
- Security Risks: The cryptocurrency landscape has witnessed several scandals, including governance issues at major exchanges like FTX, which faced significant legal challenges. Such incidents highlight vulnerabilities in the crypto market and raise questions about investor protection.
