Pakistan’s Crypto Law Uncovered: What Smart Investors Must Know Now
Cryptocurrency in Pakistan occupies a legally complex and evolving space—often misunderstood as “completely illegal,” when in reality the position is far more nuanced. As a crypto lawyer, it is essential to clarify the distinction between regulatory uncertainty, banking restrictions, and criminal illegality, particularly for investors and victims of crypto-related fraud.
Understanding this distinction is critical not only for compliance, but also for determining whether legal remedies and recovery options remain available.
Is Cryptocurrency Legal in Pakistan? A Legal Reality Check
As of today, cryptocurrency is not expressly legalized or comprehensively regulated in Pakistan. However, it is equally important to note that there is no federal statute that criminalizes the mere ownership of cryptocurrency.
Key regulatory positions include:
- State Bank of Pakistan (SBP) advisories restricting banks and financial institutions from facilitating crypto transactions
https://www.sbp.org.pk - Securities and Exchange Commission of Pakistan (SECP) warnings against unregistered crypto investments and schemes
https://www.secp.gov.pk - Ongoing policy discussions under Pakistan’s National FATF compliance framework
https://www.fatf-gafi.org
This means crypto exists in a “grey zone”—not legally recognized as legal tender, but not outright banned for individuals.
What Is Clearly Illegal: Scams, Fraud, and Unregistered Schemes
While crypto itself is not criminalized, crypto fraud absolutely is.
Under Pakistani law, authorities can act against:
- Ponzi and pyramid schemes
- Unregistered investment offerings
- Online financial fraud
- Cybercrime and electronic deception
Relevant laws include:
- Prevention of Electronic Crimes Act (PECA) 2016
- Pakistan Penal Code (PPC) provisions on cheating and criminal breach of trust
- Anti-Money Laundering Act 2010
These laws apply regardless of whether the fraud involved fiat currency or cryptocurrency.
Regulatory Concerns: Why Authorities Remain Cautious
Pakistan’s cautious approach stems from legitimate concerns, including:
- Money laundering and terrorism financing risks
- Capital flight and foreign exchange controls
- Lack of consumer protection mechanisms
- Absence of licensed exchanges operating locally
These concerns align with global standards set by the Financial Action Task Force (FATF)
https://www.fatf-gafi.org
However, caution should not be confused with prohibition.
Hope for Victims of Crypto Scams in Pakistan
One of the most common misconceptions among victims is the belief that “nothing can be done because crypto is illegal.” This is incorrect.
As a crypto lawyer, I can state clearly:
👉 Victims of crypto scams in Pakistan are not without legal remedies.
Why Recovery Is Still Possible
- Most scams involve foreign exchanges subject to AML/KYC laws
- Blockchain transactions are traceable, not anonymous
- Funds often pass through regulated platforms
- Courts can seek cooperation via mutual legal assistance channels
Authorities may act through:
- FIA Cyber Crime Wing
https://fia.gov.pk - Cross-border cooperation with exchanges and regulators
- Civil and criminal proceedings where jurisdiction permits
Recovery depends on legal strategy, forensic evidence, and professional handling, not on assumptions about legality.
The Role of a Crypto Lawyer in Pakistan
A qualified crypto lawyer provides:
- Legal classification of the scam or token
- Coordination with blockchain forensic experts
- Engagement with exchanges under AML obligations
- Evidence preparation compliant with court standards
- Cross-border legal coordination where required
AI tools, online templates, or self-guided complaints cannot perform these functions.
The Future of Crypto Regulation in Pakistan
Pakistan is under increasing pressure to:
- Develop a structured crypto regulatory framework
- Align with FATF virtual asset guidelines
- Introduce licensing and compliance mechanisms
Globally, jurisdictions are moving toward regulation, not prohibition. Pakistan is expected to follow a similar path—especially given rising public adoption and international developments.
Final Legal Perspective
Cryptocurrency in Pakistan is unregulated, not illegal.
Crypto fraud, however, is illegal and prosecutable.
For investors, caution and due diligence are essential.
For victims, there is still legal hope—but only through professional legal action, not informal or AI-driven solutions.
The information provided in this article is for general informational purposes only and does not constitute legal or financial advice.
Author & Crypto Consultant
Shahid Jamal Tubrazy (Crypto & Fintech Law Consultant)
Shahid Jamal Tubrazy, a certified top expert in Crypto Law from Duke University, is a leading authority in the cryptocurrency and blockchain space. As a seasoned Fintech lawyer, he offers a full spectrum of services, including licensing, legal guidance for ICOs, STOs, DeFi, and DAOs, as well as specialized expertise in crypto mediation, negotiation, and mergers and acquisitions. With a proven track record and published works on Blockchain Regulation and Cryptocurrency Laws, Shahid provides unparalleled insights into the complexities of the fintech world, ensuring compliance and strategic success. 🌐💼 #CryptoLaw #Fintech #Blockchain #LicenseServices #CryptoMediator #MergersAndAcquisitions #CryptoCompliance #FrozenAssetsrecovery.
EMAIL: shahidtubrazy@gmail.com
Website: https://cyberlawconsult.wixsite.com/cryptolawyer
Facebook: https://www.facebook.com/fintechcryptolawyer
