• Announcement comes after finance minister meets delegates from US, described as ‘Trump advisers for digital assets’
• Body will oversee policy development, address regulatory challenges to a crypto-conducive ecosystem

ISLAMABAD: With the Trump administration in the US showing a soft corner for digital assets, authorities in Pakistan appear to be moving quickly to legalise cryptocurrencies — hitherto a no-go area — in the country.

On Tuesday, the finance ministry announced it was considering “establishing a National Crypto Council” to adopt emerging digital currencies, in line with global trends.

An official statement said Finance Minister Muhammad Aurangzeb had a meeting on digital assets with a foreign delegation, “including President Trump’s advisers for digital assets”.

Although the readout did not officially identify the delegates, an official who attended the meeting told Dawn they included Gentry Beach Jr, Nikita Goldsmith, Alex Malkov, and Jerad Finck.

The visit comes after Gentry Beach — a business associate of President Trump’s and the father of one of the delegates who met Mr Aurangzeb on Tuesday — during his last month visit to Islamabad had assured PM Shehbaz Sharif in a meeting about over $1bn investments in Pakistan.

Mr Malkov is described as a consultant for leading blockchain and fintech firms, Mr Finck is the CEO of Cosmic Wire, a company that provides blockchain solutions, while Mr Goldsmith is said to be a tech entrepreneur. It should be noted that the delegation’s visit was not announced by the US Embassy, which usually issues readouts for meetings organised between US and Pakistani officials.

Crypto council

The government said it will consider establishing a crypto council, which will serve as a dedicated advisory body comprising key government representatives, regulatory authorities, and industry experts.

This crypto council will oversee policy development, address regulatory challenges, and ensure that Pakistan’s digital asset ecosystem evolves in a secure, compliant, and sustainable manner. The council will also collaborate with friendly countries to develop standardised frameworks for international digital economic engagement, the statement said.

Until last year, the government and the central bank had been opposed to the idea, with one previous finance minister declaring that cryptocurrencies would never be legalised in the country, while the SBP had warned the public against such transactions.

However, Finance Minister Aurangzeb took a fresh stance on Monday when for the first time he publicly called for looking at the option with an ‘open mind’ as a precursor to the formal discussions on the subject with the foreign delegation.

An official statement said the participants discussed the global evolution of cryptocurrency, its increasing adoption, and the regulatory frameworks being implemented internationally, in line with the US government policies. The deliberations focused on financial security, risk mitigation, and the potential impact of digital assets on Pakistan’s economy, the statement said.

Mr Aurangzeb stressed the importance of a well-regulated digital asset framework, aligning Pakistan with international best practices and complying with the Financial Action Task Force (FATF) guidelines. He highlighted the government’s commitment to exploring digital assets and integrating blockchain technology as part of its broader strategy to modernise the financial sector.

Discussions also included “the tokenisation of key infrastructure and state-owned enterprises (SOEs) assets, allowing for increased liquidity, broader investor participation, and greater efficiency in capital markets”.

It was noted that various stakeholders, including foreign and domestic investors, have already developed product-ready digital asset solutions that could be explored within a regulatory sandbox.

The government confirmed Pakistan currently has over 20 million active users in the digital asset market who face significant challenges, including high transaction fees. The minister reaffirmed his commitment to regulating and encouraging this industry by adopting appropriate frameworks, laws, and incentives to ensure transparency and facilitate digital business growth.

He directed relevant stakeholders to formulate a comprehensive framework that ensures security, transparency, regulatory compliance, and economic viability while safeguarding against financial crimes and illicit activities. He also stressed the need for a balanced approach — one that encourages innovation and investment in digital assets while maintaining strict regulatory oversight in line with international standards.

The meeting concluded with a consensus on adopting a cautious yet forward-looking approach, ensuring that future developments in the digital asset space align with national interests, FATF guidelines, and global financial standards.

Published in Dawn, February 26th, 2025