When it comes to crypto regulation in Pakistan, the legal stance on digital assets has shifted from outright bans to a murky gray zone of restrictions and monitoring. Also known as Pakistan cryptocurrency laws, this framework doesn’t outright ban crypto—but it makes using it risky, complicated, and often illegal for most people. The State Bank of Pakistan has repeatedly warned banks not to handle crypto transactions, and in 2024, the government reinforced that any financial activity involving Bitcoin, Ethereum, or altcoins violates existing banking rules. This means exchanges, wallets, and even peer-to-peer trades can trigger investigations.
That doesn’t mean crypto disappeared. Many Pakistanis still trade through P2P platforms like Paxful or LocalBitcoins, using cash or bank transfers to buy and sell. But here’s the catch: if your bank account gets flagged for crypto-related deposits, it could be frozen. And if you’re running a crypto business without approval? You’re operating outside the law. The KYC Pakistan, a requirement tied to global anti-money laundering standards. Also known as know-your-customer rules, it’s now enforced on any platform that wants to operate legally in the country. That’s why exchanges like Bitsonic, which only serve Korean users, are irrelevant here—but why local P2P traders often skip identity checks entirely, putting themselves at risk. The same rules that led to Upbit’s $34 billion fine in South Korea and TradeOgre’s $40 million seizure in Canada are being quietly applied in Pakistan: no KYC, no banking access, no legal protection.
And then there’s the airdrop trap. Fake crypto projects like CovidToken or HyperGraph (HGT) often target users in countries with unclear crypto laws, promising free tokens in exchange for personal info or small fees. In Pakistan, where financial literacy around blockchain is still growing, these scams thrive. The government doesn’t protect you from them—and if you send money to a fake airdrop, you’re on your own. Even legitimate projects like TripCandy’s CANDY token, which rewards travel bookings, can’t operate openly here because they’d need to comply with banking rules they can’t meet.
So what’s the reality? Crypto regulation in Pakistan isn’t about innovation. It’s about control. Banks won’t touch it. Exchanges can’t register. Airdrops are mostly scams. And if you’re using crypto, you’re doing it at your own risk. But that doesn’t mean you’re alone. Thousands are navigating this space anyway—using VPNs, P2P networks, and cash deals to keep trading. Below, you’ll find real cases of crypto crackdowns, exchange shutdowns, and compliance failures that mirror what’s happening in Pakistan. These aren’t distant stories. They’re warning signs.
Pakistan jumped to 3rd-4th globally in crypto adoption despite a 2018 ban. Now, 20 million people use stablecoins for remittances and savings. Here’s how policy shifts and real-world need drove this transformation.