Aurangzeb proposes creation of National Crypto Council for digital currency adoption

ISLAMABAD: On Tuesday, the finance ministry announced its intention to consider the establishment of a National Crypto Council aimed at adopting emerging digital currencies in accordance with global trends.

According to an official statement, Finance Minister Muhammad Aurangzeb held a meeting on digital assets with a foreign delegation, which included advisers on digital assets from President Trump, reported Dawn.

The delegation included Gentry Beach Jr., a business associate of President Trump who, during his visit last month to Islamabad, assured Prime Minister Shehbaz Sharif of over $1 billion in investments in Pakistan; Nikita Goldsmith, a tech entrepreneur; Alex Malkov, a consultant for leading blockchain and fintech companies and Jerad Finck, the CEO of Cosmic Wire, a blockchain solutions provider.

 Regarding the proposed crypto council, the government said it would serve as a dedicated advisory body composed of key government representatives, regulatory authorities, and industry experts.

The council will play a crucial role in overseeing policy development, addressing regulatory challenges, and ensuring that Pakistan’s digital asset ecosystem develops securely, compliantly, and sustainably.

Additionally, the council will collaborate with allied nations to establish standardised frameworks for international digital economic engagement.

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Previously, the government’s stance, along with that of the central bank, was one of resistance to cryptocurrencies, with a former finance minister declaring that they would never be legalised in the country. The State Bank of Pakistan (SBP) had also issued warnings against such transactions. However, Finance Minister Aurangzeb adopted a new position on Monday, advocating for an ‘open mind’ towards digital assets as a precursor to the formal discussions held with the foreign delegation.

The official statement highlighted that discussions focused on the global evolution of cryptocurrency, its growing adoption, and the regulatory frameworks being implemented in other countries, aligned with US government policies.

Matters concerning financial security, risk mitigation, and the potential influence of digital assets on Pakistan’s economy were also discussed during the talks.

Aurangzeb underscored the necessity for a well-regulated digital asset framework that aligns Pakistan with international best practices and complies with the Financial Action Task Force (FATF) guidelines and affirmed the government’s commitment to exploring digital assets and incorporating blockchain technology into its broader strategy to modernize the financial sector.

The discussions further included the ‘tokenisation of key infrastructure and state-owned enterprise (SOE) assets’ a move that aims to enhance liquidity, expand investor participation, and increase efficiency within capital markets. It was noted that there are currently over 20 million active users in Pakistan’s digital asset market, who are encountering significant challenges such as high transaction costs.

The finance minister expressed his commitment to regulating and bolstering this industry by implementing suitable frameworks, laws, and incentives designed to promote transparency and facilitate the growth of digital business.

He also directed involved parties to develop a comprehensive framework that guarantees security, transparency, regulatory compliance, and economic viability while also protecting against financial crimes and illicit activities and emphasising on a ‘balanced approach’ that nurtures innovation and investment in digital assets while ensuring rigorous regulatory oversight that aligns with international standards.