1. Control & Authority
- Traditional Money: Issued and controlled by governments & central banks (e.g., State Bank, Federal Reserve).
- Cryptocurrency: Decentralized — no single authority controls it. Managed by a network of computers worldwide.
🔹 2. Physical vs. Digital
- Traditional Money: Exists in physical form (cash/coins) and digital form (bank balances).
- Crypto: 100% digital — no physical coins or notes.
🔹 3. Supply
- Traditional Money: Governments can print more (leading to inflation).
- Crypto: Most have a fixed supply (e.g., Bitcoin = 21 million max), which makes it scarce like gold.
🔹 4. Transactions
- Traditional Money: Bank transfers, remittances, and card payments involve intermediaries (banks, PayPal, Western Union).
- Crypto: Peer-to-peer — can be sent directly without banks, anywhere in the world.
🔹 5. Speed & Cost
- Traditional Money: International transfers may take days and have high fees.
- Crypto: Can be sent in minutes/seconds with lower fees (depending on network).
🔹 6. Transparency
- Traditional Money: Bank records are private and controlled by institutions.
- Crypto: Transactions are recorded on a public blockchain (anyone can verify).
🔹 7. Security
- Traditional Money: Banks can freeze or reverse transactions.
- Crypto: Transactions are irreversible once confirmed; secured by cryptography.
🔹 8. Acceptance
- Traditional Money: Universally accepted by law (legal tender).
- Crypto: Acceptance is growing but limited; not legal tender in most countries.
Is crypto legal in my country?
Legal Status of Crypto in Pakistan (as of August 2025)
1. Still Prohibited for General Use
- The State Bank of Pakistan (SBP), along with the Ministry of Finance, reaffirmed that all cryptocurrency transactions remain illegal under current laws. There is no legal recognition for crypto trading, investing, or payments.The Times of India
2. Policy Shift & Regulatory Movement in Progress
- Despite the ban, Pakistan is actively laying the groundwork for regulation. A pilot for a Central Bank Digital Currency (CBDC) is underway, with virtual assets legislation nearing completion. The SBP is advising financial institutions to wait until a formal licensing structure is in place.Reuters
- The government has established bodies like the Pakistan Crypto Council (PCC) to shape future policy and promote blockchain adoption.Wikipedia+1
- In July 2025, the Pakistan Virtual Assets Regulatory Authority (PVARA) was formed under the Virtual Assets Ordinance, 2025. Its role is to regulate and license virtual asset service providers and ensure compliance with international standards.Wikipedia
3. Summary Table: Crypto Status
| Aspect | Current Status |
|---|---|
| Legal for general public | No—crypto transactions are illegal under existing regulations.The Times of India |
| Regulatory frameworks underway | Yes—CBDC pilot, PCC, PVARA, and accompanying legislation are in development.ReutersWikipedia+1 |
| Financial institutions’ involvement | Advised not to engage until regulations are finalized.Reuters |
So, Is Crypto Legal in Pakistan Right Now?
No—under existing law, cryptocurrency transactions remain prohibited and can carry legal consequences. However, the country is transitioning: the government is actively working on a regulatory framework to potentially authorize and oversee crypto activity through licensed channels.
Would you like me to walk you through how to stay legally compliant during this transitional period—for example, alternative methods or what to look out for while the regulatory framework unfolds?
Further reading
Big embarrassment! Pakistan’s crypto attempt to ‘please’ Donald Trump in a soup
Pakistan central bank to launch pilot for digital currency, says governor