State Bank Allows Cryptocurrencies Under Limited Purchase

In a major policy shift, the State Bank of Pakistan (SBP) is reportedly planning to allow cryptocurrency trading under a limited purchase option, marking a significant move towards digital financial inclusion and fintech innovation in the country.

According to officials familiar with the matter, the new framework will enable Pakistani investors to buy and hold cryptocurrencies within a predefined limit while ensuring strict regulatory oversight to prevent money laundering and illegal financial activities.

The SBP’s upcoming policy aims to create a regulated environment for digital asset investments. The central bank plans to:

• Introduce a limited purchase ceiling for individuals and institutions

• Allow cryptocurrency holding and trading through licensed exchanges

• Implement strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies

• Monitor cross-border transactions to avoid capital flight

A senior SBP official said the central bank is taking a cautious but progressive approach, ensuring investor protection while embracing technological advancements in the financial sector.

If implemented, this decision could redefine Pakistan’s fintech ecosystem, making it easier for tech-savvy investors and startups to explore blockchain-based solutions.

Experts believe that allowing regulated cryptocurrency purchases could:

• Encourage foreign investments in Pakistan’s digital economy

• Enable fintech innovation and startup growth

• Boost remittances through blockchain-based platforms

• Strengthen Pakistan’s global competitiveness in the digital finance sector

While Pakistan has historically been cautious about cryptocurrencies, the SBP plans to set strict limits on:

• Maximum purchase volume per individual

• Approved exchanges and wallets

• Crypto-to-fiat conversion policies

• Taxation and reporting requirements

This approach aligns with global financial regulations, ensuring that cryptocurrency adoption does not compromise economic stability.

Ali Habib, a financial analyst at a leading fintech consultancy, said:

“This move reflects Pakistan’s intent to modernize its financial sector. While the limited purchase option will keep crypto investments under control, it opens the door for future blockchain adoption in banking and payments.”

Similarly, fintech experts have stressed the importance of educating investors and raising awareness about crypto risks to prevent market misuse.

Despite the earlier restrictions, Pakistan has consistently ranked among the top countries in terms of crypto adoption, with thousands of freelancers and digital entrepreneurs already using Bitcoin, Ethereum, and stablecoins for cross-border transactions.

This policy change could formalize that ecosystem and integrate crypto assets into Pakistan’s regulated financial infrastructure.

The State Bank of Pakistan’s decision to allow cryptocurrencies with a limited purchase option marks a historic turning point for the country’s digital economy. By introducing a regulated crypto framework, Pakistan aims to balance innovation with security, enabling safe digital asset investments while protecting economic stability.

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