Cryptocurrencies and digital assets have finally been regulated in Pakistan after years of uncertainty. The Securities and Exchange Commission of Pakistan (SECP) has introduced new rules and frameworks aimed at bringing crypto trading, exchanges, and blockchain-based businesses under its authority.
It marks a significant milestone the recognition of crypto as part of the national financial system, from a grey-area asset. Investing, freelancing, and tech startups are all impacted by these new laws.
Using the SECP’s guidelines, we can discuss what these regulations mean for Pakistan’s digital economy.
The Ban to Crypto Regulation Transition
Crypto’s journey in Pakistan has not been easy.
- 2018: Ban on crypto transactions by the State Bank of Pakistan (SBP).
- 2021–2023: Pakistan ranked ninth in terms of global crypto adoption despite restrictions.
- Regulatory proposals for digital assets were announced by SECP in 2024.
- 2025: Crypto assets are officially recognized by a formal regulatory framework.
From prohibition to integration, the government has shifted from punishment to oversight.
Read More: Top Crypto Wallets for Secure Trading
Crypto Regulatory Framework for SECP
It introduces five key pillars:
1. Licensing & Registration of Exchanges
Pakistani crypto exchanges must now register with the SECP.
- Local license applications are being submitted by Binance Pakistan, OKX Global, and Rain.
- Trading, staking, and wallet services can only be offered by licensed entities.
- Reports on compliance are required quarterly by exchanges.
Impact: Reduced scam risks and a safer trading environment.
2. KYC & AML Compliance
Know Your Customer (KYC) verification is required for every user.
- Tax ID, CNIC, and proof of residence are required.
- AML rules flag transactions over Rs. 100,000 for reporting.
- Offshore transfers without documentation and anonymous wallets are prohibited.
Impact: Enhances investor safety and transparency.
Read More: How to Buy Bitcoin Legally in Pakistan
Taxation on Crypto Assets
| Type of Income | Tax Rate (2025) | Applicable Notes |
|---|---|---|
| Short-Term Crypto Gains | 15% | If sold within 12 months |
| Long-Term Holdings | 10% | For assets held over 1 year |
| Mining / Staking Rewards | 10% | Declared as passive income |
| NFT / Token Sales | 12% | Under SECP creative asset clause |
3. Stablecoin & CBDC Oversight
Government and interbank transactions can now be conducted using the Digital Rupee (CBDC) of the State Bank.
- Foreign reserves must back all stablecoins (like USDC, USDT).
- Those who hold stablecoin collateral must be SECP-approved custodians.
- For cross-border payments, Pakistani banks may integrate blockchain rails.
- Faster remittances and less reliance on dollars.
4. Exchange & Wallet Security Standards
Exchanges must protect users by:
- Cold wallets store 95% of user funds.
- Insure against theft and cyberattacks.
- Conduct third-party audits annually.
- Protect all users with 2FA & seed phrases.
Impact: Retail traders and freelancers become more confident.
5. Buying and & Trading Crypto in Pakistan: How to Do It Legally
Steps for investing under SECP are as follows:
- Use Licensed Exchanges Trade only on platforms approved by SECP, such as Binance Pakistan and OKX.
- Complete KYC verification by submitting your CNIC, mobile verification, and selfie.
- Link a PKR Bank Account Only registered banks can accept deposits and withdrawals.
- Pay Taxes on Profits Declare crypto income on your annual FBR.
- Use Legal Wallets Use official wallets like Trust Wallet, Ledger Nano X, or SECP-integrated wallets.
Under AML laws, unregistered P2P trades remain punishable.
6. Freelancers & Startups Affected
Crypto freelancers have good news:
- Registered wallets can now receive crypto payments legally.
- Applications for sandbox licenses are encouraged by SECP.
- Fintechs can offer microloans and remittances based on crypto under SECP supervision.
Crypto income can now be converted to PKR safely without worrying about freezing bank accounts.
Benefits of the SECP Crypto Framework
| Benefit | Impact |
|---|---|
| Legal Trading Status | Crypto now officially recognised under Pakistani law. |
| Investor Safety | Exchanges held accountable for user funds. |
| Economic Growth | Encourages blockchain startups and foreign investment. |
| Transparency | KYC and AML ensure a clean ecosystem. |
| Tax Revenue | Crypto profits now contribute to the economy. |
Restricted Items
Some rules remain strict despite progress:
- Cryptocurrency accounts cannot be anonymous (all transactions must be traceable).
- An energy license is required for mining.
- Stablecoin transfers still have foreign exchange limits.
- SECP reviews ICOs/token launches as “security tokens.”
Expert Opinions
Deputy Commissioner for Digital Finance (SECP) Farah Khan said:
Cryptocurrencies are not banned but rather protected and innovated in a safe environment.
In the next two years, analysts expect blockchain-based FDI to reach over $200 million.
Pakistan roadmap for digital assets
- Pakistan’s first regulated crypto exchange launches in 2026.
- National integration of CBDC in banking by 2027.
- Blockchain payment corridors between the UAE and Malaysia in 2028.
Like Dubai and Singapore, Pakistan will become a regional hub for crypto.
FAQs Crypto Regulation in Pakistan
Q1: Is cryptocurrency legal in Pakistan now?
As of 2025, crypto trading is legal on exchanges and wallets registered with SECP.
Q2: Can freelancers receive payments in Bitcoin or USDT?
Through verified platforms linked to local bank accounts, freelancers can receive crypto payments legally.
Q3: Do I need to pay tax on crypto profits?
It depends on the holding period and profit margin of crypto earnings whether capital gains tax is due.
Q4: Are mining and staking allowed?
However, miners must obtain SECP approval and follow environmental guidelines.
Q5: What are the penalties for unregistered crypto trading?
A fine of up to Rs. 10 million or suspension of an account may result from unlicensed trading.
Conclusion
Pakistan’s crypto regulation policy is a turning point in digital finance. As a result of the SECP’s licensing system, taxation, and consumer protection, innovation, investment, and global trust have been opened up.
Trading needs to go legit, transparent, and compliant.
Businesses in Pakistan have an opportunity to build next-generation FinTech and blockchain solutions.
Crypto is no longer banned it is finally regulated.
