Pakistan may soon save up to $2 billion every year in remittance fees, thanks to its shift from banning crypto to finally regulating it. With the launch of the Pakistan Virtual Asset Regulatory Authority (PVARA) in July 2025, the country has opened the door for fast, low-cost and transparent digital money transfers a change that could directly benefit millions of families who depend on overseas income.
A Major Step Toward Cheaper Remittances
Pakistan receives over $30 billion in remittances every year. But the journey of that money is rarely smooth. Transfers can take days, hidden fees cut into the total and exchange rates often reduce what families receive.
With crypto now regulated, workers abroad can soon send money home through stablecoins like USDT and USDC options that settle transfers within minutes and cost only a tiny fraction of traditional fees. A worker sending $1,000 could now have nearly the entire amount reach home, instead of losing tens of dollars along the way.
Even if only half of all remittances use these regulated digital channels, Pakistan could retain $1.5–$2 billion annually.
A Country Already Leading in Adoption
Pakistan ranks third globally in crypto adoption, according to the Chainalysis 2025 Index behind only India and the US. With 26–27 million active crypto wallets, the country has one of the world’s largest user bases.
Most of these users are young, digitally active and often turned to crypto because traditional banking was slow, costly or limited. Freelancers, students and overseas workers helped build this ecosystem long before any official policy arrived.
Now that regulations are in place, this massive user base finally has a legal and safe environment to operate in.
From Ban to Regulation: A Dramatic Policy Shift
Just a few years ago, crypto in Pakistan existed in a grey zone. In 2018, the State Bank discouraged banks from dealing with digital assets, effectively freezing the industry.
Fast forward to 2025, and the landscape has been transformed. The Virtual Assets Ordinance 2025, signed by President Asif Ali Zardari, created PVARA to bring structure, licensing and oversight to the sector.
Under the new rules:
- Exchanges can apply for official licenses
- Custodians and wallet providers must meet compliance rules
- Stablecoin issuers get clear operating guidelines
- A regulatory sandbox allows supervised testing of new ideas
For the first time, innovation can grow without fear of sudden bans or crackdowns.
Challenges That Must Be Managed
This rapid shift comes with responsibilities. Pakistan must ensure:
- No misuse of electricity for crypto mining, as warned by the IMF
- Strong consumer protection with refunds and insured custody
- Global standard AML compliance following FATF guidelines
A safe system is essential before large-scale adoption begins.
A Turning Point for Pakistan’s Digital Future
The new crypto framework is not the final step it’s the first one. Regulators, universities, banks, startups and global partners must now work together to build a secure and innovative financial system.
If successful, Pakistan could evolve from simply being a remittance-receiving nation to a creator of modern financial tools for the world.
This transformation begins with one license, one trained developer and one family saving money that previously vanished in fees.
The foundation is ready. The people are ready. What comes next depends on how confidently Pakistan embraces this moment.
