00:00Here's a fresh deep dive. Pakistan is officially stepping into the crypto game with regulation,
00:07not just reaction. Let me break it down. Pakistan's New Crypto Reality.
00:12The government passed the Virtual Assets Ordinance 2025 establishing Piwara, Pakistan Virtual
00:20Assets Regulatory Authority. Its job license supervise and regulate virtual asset service
00:27providers across Pakistan. Pakistan had long banned cryptocurrencies in a way. SBP declared
00:35them not legal tender, not authorized for operations back in 2018. But now there's a shift toward
00:43formal oversight and control. The law doesn't just aim to police and restrict. It also builds
00:50in innovation support, regulatory sandboxes and a structure aligned with international standards.
00:57It's another big move. Pakistan is planning a pilot for a central bank digital currency,
01:07a digital rupee. This signals that while cryptos private ones are being regulated, digital fiat
01:17is being explored. The catch slash risk. The SBP is still not recognizing cryptos as legal tender.
01:24Even with regulation, the gap between de facto usage and de jure recognition remains. Volatility,
01:32money laundering, fraud, all the old crypto problems are still concerns. A regulator is one thing.
01:38Enforcement plus consumer protection is another. Power slash energy issues.
01:44Allocations for Bitcoin mining and AI centers are ambitious. But energy infrastructure plus costs
01:51stability will be large logistical and financial challenges. Why it matters. Big picture. This
01:59positions Pakistan as one of the few countries in South Asia that are trying to do crypto regulation
02:06proactively, not just crisis firefighting. If done right, this can attract foreign investment,
02:13create jobs, especially in blockchain, AI, tech infra, and help convert Pakistan's large informal crypto
02:21slash trading activity into formal taxable regulated streams. My take. Skeptical but hopeful.
02:30I think Pakistan is at a turning point. The old ban everything vague approach was untenable,
02:36especially given how many people already use crypto and blockchain tech here. But regulation must be
02:42more than a paper tiger. If Pavara just becomes another bureaucracy, the opportunity could slip.
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