Pakistan has a large population and high inflation, and cryptocurrencies are prevalent here, just like neighboring India. At the same time, they are officially banned.
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Pakistan has a large population and high inflation, and cryptocurrencies are prevalent here, just like neighboring India. At the same time, they are officially banned.
According to our rating, Pakistan has a high level of security. The jurisdiction has 58.2 points (from 100) for safety in Numbeo crime rating (1). The homicide level (2) is 4.2 per 100,000 inhabitants a year.
However, as of October 2021, the State Bank of Pakistan has issued a circular requiring all banks and financial institutions to block cryptocurrency transactions in the country. The circular also declared that cryptocurrency is not legal tender in Pakistan and warned against the risks associated with its use.
Paying salaries in cryptocurrency is also prohibited in Pakistan.
In 2018, Pakistan banned (3) crypto. In 2020, as a part of FATF's recommendations, Pakistan reviewed cryptocurrency regulations, focusing on their use in tax evasion. They are still under consideration, even as Pakistan has been removed from FATF's gray list. In 2021, a regional High Court ordered a study of whether Pakistan's legal system could make the use of cryptocurrency permissible. The report stated that cryptocurrencies are volatile and speculative and could raise illicit finance concerns. In a speech in February 2022, the Governor of the Central Bank laid out similar concerns. Reports in May 2022 revealed that Pakistan had formed several committees that will evaluate legislative options to legalize cryptocurrencies. Lacking any clarity on jurisdiction and enforcement, Pakistan's domestic adoption ranks sixth in the world.
In Pakistan, the Central Bank of Pakistan (4) (SBP) and the Securities and Exchange Commission of Pakistan (SECP) regulate the crypto industry.
Earlier, the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP), and the Ministry of Information Technology and Telecommunication proposed (5) a complete ban on crypto-based transactions.
The Pakistani government does not recognize (6)crypto as legal tender. There are no laws defining the tax system for cryptos.
Tax name | Index |
PIT tax Min | 2,5 |
PIT tax Max | 35 |
Corporate tax (CIT) | 29 |
Min Individual CGT (for crypto) | 0 |
Max Individual CGT (for crypto) | 35 |
Wealth tax Min | 0 |
Wealth tax Max | 0 |
In Pakistan, income tax slabs (7) are based on an individual’s annual taxable income. The slabs are determined by the amount of income earned during the year. The government of Pakistan has finalized tax slabs for salaried individuals for the fiscal year 2022-23. It has set a minimum income tax rate of 2.5% for those earning up to Rs. 100,000 per month and a maximum of 35% for individuals earning a monthly salary over Rs.1 million.
Currently, the Corporate Income tax rate (8) is 29% for tax year 2019 and onwards, whereas the corporate tax rate is 35% for Banking Industry for TY 2019.
1)Crime Index by Country 2023 Mid-Year
2)List of countries by intentional homicide rate
3)Pakistan's remarkable journey towards cryptocurrency adoption. Article
4)Central Bank of Pakistan. PDF-file
5)PTA opposes banning cryptocurrencies. Article
6) IS BINANCE P2P LEGAL IN PAKISTAN. Article
7)Income Tax Slab In Pakistan 2022-2023. Article
8)Taxation in Pakistan. Wiki