The piece you’re about to read is an opinion from Vince Kadar, who serves as CEO of Polymath.

The world of crypto is changing fast, and Pakistan is right there with it. Interestingly, the crypto-friendly stance of US President Donald Trump has had a noticeable impact on Pakistan’s government. Once hesitant about crypto, the nation is now actively working towards building an economy that embraces it. Spearheading this transformation is the Pakistan Crypto Council (PCC). Think of them as being front and center in creating a solid set of rules for crypto – a lot like what we’re seeing play out in the United States.

But here’s the thing: if Pakistan really wants to become a major player in the crypto space, a true hub that attracts investment from abroad (FDI), the government can’t do it all on its own. What’s really needed is teamwork – a strong partnership between public and private sectors. This collaboration is key to educating those in power, shaping the right legal frameworks, and making sure Pakistan’s digital financial world grows in a healthy and sustainable way.

Pakistan Crypto Council Takes a Page from the American Playbook

To really understand where the Pakistan Crypto Council is coming from and where its policies are headed, it’s helpful to look at what’s been happening on the global political stage recently.

Back in May 2023, Aisha Ghaus Pasha, who previously held the position of Pakistan’s Minister of State for Finance and Revenue, stated quite firmly that crypto would never be legal in Pakistan. This announcement came after Pakistan was removed from the Financial Action Task Force (FATF) gray list, but under the condition of tough anti-money laundering measures.

Fast forward a year to November 4, 2024, and we see a significant shift. The Pakistani government started to reconsider its anti-crypto position and began exploring the idea of regulating cryptocurrencies to be legal tender. Now, it’s worth noting that the US elections took place on the very same day. Coincidence? Maybe not entirely.

Shortly after Donald Trump’s victory in the US, he signed an executive order in January 2025 to establish a Working Group focused on Digital Assets. This group was essentially an advisory council made up of experts tasked with developing a comprehensive plan for regulating digital assets in the US.

Not long after this, Pakistan’s Finance Ministry announced they were thinking about forming their own “National Crypto Council” to pave the way for legalizing crypto. Interestingly, this announcement happened right after Pakistan’s Finance Minister, Muhammad Aurangzeb, met with a delegation from abroad, which included advisors to Trump, to talk about digital asset regulations.

And so, in March 2024, the Pakistan Crypto Council came into being, with the Finance Minister taking on the role of Chairman and Bilal bin Saqib appointed as CEO.

Acknowledging the influence of the US President, Saqib remarked that Donald Trump is:

“the biggest positive force for crypto we’ve ever seen.” He further pointed out, “Trump is really putting crypto on the map as a national priority. Every country, Pakistan included, is going to have to keep up or risk being left behind.”

In the US, Trump’s aim is to cut through the red tape from federal agencies that could hold back the crypto industry. To make sure innovation thrives, he’s brought in leaders from private companies – CEOs and founders – to help steer the crypto movement in his country.

Trump has even appointed ex-Paypal COO David Sacks as the “White House A.I. & Crypto Czar” to “guide the Administration’s direction on policy.” He also hosted the very first White House Crypto Summit, gathering key figures from the private sector to discuss the future of crypto laws.

Taking cues from Trump’s approach, the Pakistan Crypto Council is also embracing this idea of government and private industry working hand-in-hand when it comes to the crypto economy. These kinds of partnerships between government and industry leaders are crucial if Pakistan wants to build a digital financial system that’s ready for the future.

Why Private Companies are So Important in Shaping Policy

Pakistan’s Prime Minister, Shehbaz Sharif, clearly understands the strategic importance of blockchain and crypto. He recently convened a significant meeting in Islamabad to talk about investing in Bitcoin mining and turning assets into tokens. The meeting was attended by top government officials, the CEO of the Pakistan Crypto Council, and representatives from major crypto businesses.

During these discussions, Sharif directed the Pakistan Crypto Council to work closely with private sector leaders to develop the infrastructure needed for Bitcoin mining and tokenization. One idea proposed was to use Pakistan’s surplus energy to power Bitcoin mining operations.

The meeting also touched on plans for a $3.5 billion investment in Bitcoin mining infrastructure and how blockchain technology could strengthen Pakistan’s economy. They also focused on creating asset tokenization products that comply with regulations and setting up a strong regulatory framework for digital assets.

This move in governance – mirroring how America is approaching collaboration with the crypto industry – really highlights how important private companies are in shaping policy. Industry experts have a deep understanding of what the market needs, making their input incredibly valuable when it comes to creating effective regulations.

According to a 2024 Chainalysis report, Pakistan ranks ninth in the world for crypto adoption. Referring to this data, the Pakistan Crypto Council’s CEO said,

“Pakistan is in the top 10 globally for crypto adoption, with an estimated 25 million+ active users, and a foreign remittance market worth over $30 billion. Blockchain offers an incredible opportunity for innovation and growth. This is just the start; Pakistan is open for business.”

It’s clear that for Pakistan to nurture its crypto world in a way that’s both secure and sustainable, the government can’t go it alone. Just like the US is bringing industry leaders into discussions about regulations, Pakistan needs to encourage teamwork between government officials, regulatory bodies, and crypto experts.

By following a similar strategy to Trump’s, the Pakistan Crypto Council has already made a powerful statement: “Pakistan is done sitting on the sidelines!” With its high potential, cost-effectiveness, and a young, tech-savvy population, Pakistan is in a prime position to use the expertise of private companies to boost job creation and push forward with smart regulations.

As Pakistan picks up the pace in its policy shift to strengthen the blockchain industry, a strong partnership between the public and private sectors is going to be the key to establishing the country as a leading hub for crypto innovation in South Asia.

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