4 min read
A viral Reddit thread has exposed a widening gap between public perception and regulatory reality in Pakistan’s cryptocurrency landscape, after claims that crypto had been “legalized” began circulating rapidly across social media and investment forums. The episode highlights how quickly misinformation can take hold in a market where regulatory signals are still evolving and clarity remains limited.
The confusion began on r/FIREPakistan, a subreddit dedicated to financial independence and early retirement, when a user confidently announced that cryptocurrency had been legalized in Pakistan and immediately asked for guidance on how to start buying digital assets. “Now that crypto’s legalized… I wanna know how i can buy some. Is there any option aside from Binance?” the user wrote, echoing a belief that had already spread widely on social media.
Within hours, however, the post took a different turn. The original author acknowledged the mistake, admitting that the claim was based on unverified information seen online. “My bad broskis, I saw something about it on social media, i guess this isn’t something confirmed as of yet,” they wrote, prompting a wave of corrective responses from other community members.
The thread quickly filled with warnings and reality checks from users more familiar with Pakistan’s regulatory environment. Comments reflected widespread uncertainty and concern around legality, banking exposure, and enforcement risks.
“Not legal yet, stay away,” one user cautioned.
Another warned about informal trading channels, saying:
“Only P2P will be the best option… Otherwise most people are Ali Baba on these platforms.”
Discussion spread, with a sprinkle of meme comments here and there:
Comment
byu/IMAGI-frame from discussion
inFIREPakistan
Comment
byu/IMAGI-frame from discussion
inFIREPakistan
The misunderstanding traces back to mid-December 2025 announcements involving the newly established Pakistan Virtual Assets Regulatory Authority. PVARA issued No Objection Certificates (NOCs) to major global exchanges, including Binance and HTX, formerly Huobi.
These approvals allow companies to begin compliance processes such as anti-money laundering onboarding, establishing local entities, integrating reporting systems, and preparing full license applications. Crucially, they do not permit trading, customer onboarding, or commercial operations.
PVARA Chairman Bilal bin Saqib addressed the issue directly at a December 14 press conference, stating that the NOCs are “the first practical step” and “do not constitute a full operating license.” Finance Minister Muhammad Aurangzeb reinforced the same message, framing the move as “responsible innovation” rather than legalization.
Despite these developments, crypto trading remains effectively restricted. Pakistani banks continue to block crypto-related transactions, the State Bank of Pakistan’s 2018 advisory against digital currencies remains in force even with some meager efforts to curtail it. There is still no exchange that can operate commercially. The Virtual Assets Bill, which would provide a legal foundation for the sector, is still pending regulators’ approval. PVARA has reiterated that retail trading will not be allowed until legislation and licensing frameworks are fully in place.
Pakistan consistently ranks among the world’s top countries for retail crypto adoption. If estimates suggest anything, 30 to 40 million users with more than $300 billion in annual transaction volume is in store for the third world country. Yet most of this activity occurs through informal peer-to-peer networks, without consumer protections, legal recourse, or regulatory oversight.
Discussions around central bank digital currencies, taxation, and exchange licensing continue to stir public emotions. However, sometimes this excitement frequently jumps ahead of confirmed facts, oftentimes with serious financial consequences.
For now, cryptocurrency has not been legalized in Pakistan. Until the Senate passes the Virtual Assets Bill and licensed platforms become operational, investors are urged to avoid assumptions based on social media claims. They should treat peer-to-peer trading as high-risk, wait for officially approved exchanges, and verify developments directly through the State Bank of Pakistan, the Ministry of Finance, or PVARA. Or, if nothing else seems right, look for some YouTube videos, as they provide expert advise, according to the Crypto Council Chairman.
