The Pakistani government has officially approved the establishment of a new cryptocurrency regulatory agency as part of its ambitious plan to develop the country into a global Bitcoin hub. This measure is evaluated as a strategic choice to respond to the rapidly growing digital asset market and nurture the cryptocurrency industry as a new growth engine for the national economy.
Through the newly launched regulatory agency, the government aims to establish a clear legal framework, enhance investor protection and market credibility, and actively attract related startups and global capital. Additionally, it plans to block illegal financial transactions by introducing global standards such as Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) in line with international regulatory standards.
Currently, the estimated number of Bitcoin users in Pakistan is over 40 million, which accounts for approximately 17% of the total population (around 240 million). Considering the high cryptocurrency penetration rate relative to the population, this reflects the government's judgment to establish an institutional foundation and maximize potential. In particular, Pakistan has seen a rapid spread of cryptocurrency adoption due to its high proportion of young population and familiarity with mobile and digital payment environments.
There have been concerns about insufficient investor protection mechanisms and potential illegal fund inflows due to the lack of cryptocurrency regulation. Accordingly, the Pakistani government plans to clarify regulations through this new organization and focus on institutionalizing the digital asset market within the regulatory framework.
An economic expert noted, "If Pakistan institutionalizes the market through regulation, it can reduce uncertainty and enable global companies and investors to enter more proactively," adding that "there is a high possibility of establishing itself as a digital financial hub connecting the Middle East and South Asia."
This decision demonstrates a turning point for the Pakistani government, which is choosing to view the cryptocurrency industry as an opportunity rather than just a threat. Once the specific authorities, roles, and detailed regulatory proposals of the newly established agency are disclosed, it is expected to have significant ripple effects in the global market.
