Crypto Regulation in Pakistan: What’s Legal, What’s Not

When it comes to crypto regulation in Pakistan, the official stance from the State Bank of Pakistan bans financial institutions from handling cryptocurrency transactions. Also known as crypto banking restrictions, this rule means banks can’t open accounts for crypto exchanges, process crypto deposits, or even let users link their wallets to payment apps. But that’s not the whole story. While the central bank says no, millions of Pakistanis still trade Bitcoin, Ethereum, and other tokens—using peer-to-peer platforms, foreign exchanges, and cash-based deals.

There’s no formal license system for crypto exchanges in Pakistan, so platforms like Binance or KuCoin aren’t officially recognized—but they’re still widely used. Traders rely on P2P marketplaces, like LocalBitcoins and Paxful, where users trade directly using bank transfers, mobile wallets, or even cash. These platforms fill the gap left by blocked banking channels. Meanwhile, crypto tax Pakistan, has no clear rules yet. The Federal Board of Revenue hasn’t issued official guidance on how to report crypto gains, leaving users guessing whether they owe taxes or not.

What’s clear is that enforcement is uneven. The government has cracked down on some crypto-related scams and fake investment schemes, but it hasn’t shut down the underground market. People use crypto to send remittances, protect savings from inflation, and even start small online businesses. Some startups are quietly building crypto-friendly tools, hoping the rules will change. Others are just trying to stay under the radar.

You’ll find posts here that break down how traders bypass banking blocks, what scams to avoid in Pakistan’s unregulated space, and how recent global trends might influence local policy. There are reviews of exchanges that still work locally, deep dives into P2P risks, and warnings about fake airdrops targeting Pakistani users. This isn’t about theory—it’s about what’s actually happening on the ground, day after day, in cities like Karachi, Lahore, and Islamabad.