Pakistan’s virtual-asset regulator says around 40 million Pakistanis have cryptocurrency-linked accounts, highlighting the rapid growth of digital assets as the country moves to establish a formal regulatory framework.
Around 40 million Pakistanis hold cryptocurrency-linked accounts, according to Bilal Bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), who shared the figure during a briefing to a Senate committee.
Saqib said Pakistan has become one of the world’s largest cryptocurrency markets, attributing the rapid adoption of digital assets in part to the country’s young population and growing familiarity with digital financial technologies.
The figure was presented during a meeting of the Senate Standing Committee on Cabinet Secretariat, where lawmakers discussed cryptocurrency regulation alongside other technology and digital-economy issues.
Pakistan Moves Toward Formal Crypto Regulation
The large number of existing crypto-linked accounts presents a significant challenge for regulators as Pakistan works to bring the digital-asset sector into a formal legal and supervisory framework.
Saqib said Pakistan had established its virtual-asset regulatory framework within five months. The framework is intended to oversee businesses operating in the sector and provide greater transparency around virtual-asset activity.
According to the regulator, two international virtual-asset companies had already received no-objection certificates, while other operators were being required to begin the registration and licensing process.
Authorities have indicated that action could be taken against virtual-asset businesses operating without the required approvals.
Most Users Are Under 40
Saqib told the committee that the majority of Pakistan’s cryptocurrency users are below the age of 40.
Pakistan’s young population and large digital workforce have contributed to the adoption of online financial services, according to the PVARA chairman.
He also argued that restricting access to emerging technologies could limit Pakistan’s ability to participate in the evolving global digital economy.
The reported 40 million figure refers to crypto-linked accounts, and the briefing did not provide an independent methodology for determining how many individual people those accounts represent.
Crypto Market Estimated at $250 Billion
During the briefing, PVARA estimated the size of Pakistan’s virtual-asset market at approximately $250 billion.
Saqib also estimated that between $10 billion and $20 billion of Pakistani money is invested in crypto assets.
These figures were provided by PVARA and should therefore be viewed as regulatory estimates rather than independently verified market measurements.
Pakistan’s growing crypto activity is also attracting attention because of its potential connection to remittances and foreign-exchange flows.
Government Examines Tax Treatment
Taxation was another issue raised during the Senate committee’s discussion.
Lawmakers questioned how cryptocurrency activity should be incorporated into Pakistan’s tax system as regulators formalise the sector.
Saqib said Pakistan was examining an appropriate taxation model and cautioned that excessive taxation could encourage businesses and investors to move their activities offshore.
The broader regulatory effort is intended to bring activity that currently takes place outside the traditional financial system into a more transparent and supervised environment.
Global Crypto Regulation Influences Pakistan
Pakistan’s regulatory approach comes as several international financial centres develop their own frameworks for digital assets.
Saqib pointed to countries and jurisdictions including the UAE, Hong Kong and Thailand, which have been developing policies for virtual assets and blockchain-based financial services.
He said Pakistan was looking to develop a framework that allows digital-asset technology to operate under regulatory oversight rather than attempting to eliminate the activity.
A New Phase for Pakistan’s Digital-Asset Market
The reported scale of cryptocurrency adoption presents both an opportunity and a regulatory challenge for Pakistan.
With millions of crypto-linked accounts already reportedly in existence, authorities now face the task of establishing clear rules for exchanges, virtual-asset service providers, taxation, consumer protection and financial-crime controls.
For Pakistan’s technology sector, the development also signals a broader shift toward recognising blockchain and digital assets as part of the country’s emerging digital economy.
The coming months are expected to provide a clearer picture of how Pakistan’s new regulatory framework will affect cryptocurrency businesses and users operating in the country.
