Pakistan moves toward regulating 40 million digital asset users, with blockchain seen as a tool for remittances, inclusion, and financial modernization.
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| With millions already using digital assets informally, Pakistan is exploring blockchain regulation to formalise finance and expand economic access. Image: CH |
Islamabad, Pakistan — May 6, 2026:
Pakistan is accelerating efforts to regulate its rapidly expanding digital asset ecosystem, with officials warning that delaying oversight could deepen reliance on informal financial systems already used by an estimated 40 million people.
At the center of this push is State Minister and Chairman of the Pakistan Virtual Assets Regulatory Authority, Bilal Bin Saqib, who has called for urgent integration of digital asset users into the formal economy. Speaking at a leadership summit on blockchain and digital assets hosted by the LUMS Centre for Digital Assets Research, he argued that regulation must strike a balance between enabling innovation and protecting consumers.
The scale of adoption is significant. Around 40 million users are already engaging with digital assets, largely through unregulated or semi-regulated platforms. This parallel financial ecosystem presents both opportunity and risk: while it reflects strong demand for digital finance tools, it also leaves users exposed to volatility, fraud, and lack of legal protection.
A new angle emerging from Pakistan’s policy discussion is the role of blockchain not just as a speculative technology, but as financial infrastructure. Officials are increasingly framing it as a potential backbone for remittances, which currently total around $38 billion annually. By using blockchain-based settlement systems, policymakers believe cross-border transfers could become faster, cheaper, and more transparent—potentially reducing reliance on traditional intermediaries.
Another key focus is the country’s growing freelance economy. With millions of workers earning income from global platforms, regulators see blockchain-based payment systems as a way to improve transaction efficiency and enhance Pakistan’s competitiveness in the digital labor market.
The proposed regulatory approach is based on a “risk-mitigated” framework, including sandbox environments where new financial technologies can be tested under supervision before wider deployment. This reflects a broader global trend, where governments attempt to avoid stifling innovation while still maintaining oversight.
One of the most strategically significant proposals is asset tokenisation. By converting real-world assets such as real estate into digital tokens, smaller investors could gain access to markets traditionally limited to high-net-worth participants. If implemented, this could reshape investment participation in a country where capital access remains uneven.
However, the scale of informal adoption presents a regulatory dilemma. Bringing millions of users into a formal system requires not only legal frameworks but also infrastructure, education, and enforcement capacity. Officials acknowledge that the biggest gap is not technology, but talent—highlighting the need for skilled professionals who understand both finance and blockchain systems.
The situation also places Pakistan at a strategic crossroads. Rather than adopting external regulatory models, policymakers argue the country has an opportunity to help shape global digital finance standards. That ambition, however, depends on execution speed and institutional coordination across banks, technology firms, academia, and regulators.
The broader implication is clear: blockchain in Pakistan is no longer being discussed as a niche innovation. It is increasingly viewed as a structural financial layer that could formalize millions of users, transform remittances, and redefine access to investment—if regulation can keep pace with adoption.