Why Pakistan Ranks 3rd-4th in Global Crypto Adoption Despite Past Restrictions

For years, Pakistan was one of the most hostile countries in the world toward cryptocurrency. In 2018, the State Bank of Pakistan banned banks and exchange firms from dealing with digital currencies. Anyone caught trading Bitcoin or Ethereum risked losing their accounts. Yet today, Pakistan sits at 3rd or 4th globally in crypto adoption - ahead of Japan, Germany, and even the United Kingdom. How did this happen?

From Ban to Boom: The Regulatory Flip

The change didn’t come from a sudden love of Bitcoin. It came from necessity. Pakistan’s economy has been under pressure for over a decade. Inflation hit 38% in 2023. The Pakistani rupee lost nearly half its value against the dollar between 2020 and 2025. People couldn’t trust their savings. Banks were slow. Remittances from overseas workers - which make up 7% of GDP - took days and cost up to 12% in fees.

Then, in 2024, things started shifting. The government didn’t legalize crypto overnight. Instead, it watched what people were already doing. Millions were using peer-to-peer platforms like Paxful and LocalBitcoins. Others were buying USDT (Tether) on decentralized exchanges to protect their money. By mid-2024, an estimated 20 million Pakistanis - nearly 9% of the population - owned some form of cryptocurrency. That’s more than double the global average.

In July 2025, the State Bank of Pakistan officially launched the Pakistan Virtual Assets Regulatory Authority (a government body established to license, monitor, and regulate virtual asset service providers in Pakistan). It wasn’t a free-for-all. Exchanges had to register, know-your-customer rules were enforced, and stablecoins were classified as digital assets, not currency. But for the first time, crypto was no longer illegal - it was regulated.

Why Stablecoins Are the Real Story

You won’t find many Pakistanis buying Bitcoin to flip it. You won’t see them trading Solana for fun. What you will find is people using USDT, USDC, and BUSD to move money - fast, cheap, and across borders.

A factory worker in Lahore sends $300 to his brother in Dubai. Without crypto, that costs $36 in fees and takes three days. With USDT, it costs $1 and arrives in under 10 minutes. That’s the real driver. Chainalysis data shows over 70% of crypto value received in Pakistan in 2025 came from stablecoin purchases. Most of it was used for savings or remittances, not speculation.

This isn’t just about convenience. It’s about survival. When your currency loses 20% of its value in a year, holding cash is a loss. Holding USDT is a hedge. And since most Pakistanis don’t have access to foreign bank accounts, crypto became the only way to keep value safe.

How Pakistan Ranks So High - And Why Numbers Vary

You’ll see Pakistan ranked 3rd in some reports, 4th in others, and even 9th in a few. That’s because rankings aren’t based on one single rule.

Chainalysis’ 2025 Global Adoption Index - the most widely cited - puts Pakistan at 3rd. It measures total crypto value received, adjusted for population size and economic activity. It doesn’t count how many people own crypto. It counts how much money flows in. And Pakistan’s inflows are massive.

Other reports, like the one from May 2025, rank Pakistan 9th because they measure ownership rates - how many people hold crypto, not how much they hold. In those rankings, Nigeria and Indonesia come out ahead because more people own small amounts. But in Pakistan, people aren’t buying $10 worth of crypto. They’re buying $500, $1,000, even $5,000.

The difference matters. Pakistan’s crypto economy is worth an estimated $20-25 billion. That’s more than the entire GDP of some small African nations. It’s not a side hustle. It’s a parallel financial system.

Who’s Behind the Push?

The government didn’t do this alone. In early 2025, the Pakistan Crypto Council was formed - a public-private body led by CEO Bin Saqib. Its job? To bridge the gap between regulators and crypto businesses. It’s not a lobby group. It’s a working team. They brought in lawyers, tech founders, and even auditors from the Big Four firms to design compliance frameworks.

International players got involved too. In August 2025, the Pakistan Crypto Council signed a partnership with World Liberty Financial, a company linked to the Trump family. The deal promised to build blockchain-based remittance channels and train 100,000 Pakistani entrepreneurs in crypto finance. Critics called it political. Supporters said it brought real capital and expertise.

One thing’s clear: this isn’t just about politics. It’s about economics. Michael Saylor’s MicroStrategy, which holds over $62 billion in Bitcoin, quietly started advising Pakistan’s finance ministry on how to use crypto as a reserve asset. That’s not something you do unless you believe it’s sustainable.

What This Means for the Future

Pakistan’s crypto adoption isn’t a flash in the pan. It’s built on three solid foundations:

1. Utility - People use crypto because it solves real problems, not because they want to get rich.
2. Regulation - Clear rules mean businesses can operate without fear of sudden crackdowns.
3. Scale - With 230 million people, even 10% adoption creates a market bigger than most countries’ stock exchanges.

By 2026, Pakistan could become the first major developing nation to integrate crypto into its national payment infrastructure. The central bank is already testing a digital rupee - but unlike China’s digital yuan, it’s being designed to work alongside stablecoins, not replace them.

The risk? If politics takes over. If foreign companies push for profit over public good. If regulators start taxing crypto like gambling instead of recognizing it as a tool for financial inclusion.

But right now, the signs are good. Pakistan didn’t become a crypto leader by chasing hype. It did it by listening to its people - and giving them the tools to protect their money.

What’s Next for Pakistan’s Crypto Scene

The next two years will be critical. The Pakistan Virtual Assets Regulatory Authority has issued 47 licenses so far. More are coming. Local exchanges like BuyUcoin and CryptoPak are expanding into mobile apps and offline kiosks in rural areas. Universities are adding blockchain courses. Even small shops in Karachi now accept USDT for groceries.

The real test? Will Pakistan keep its focus on utility? Or will it turn into a speculative playground?

So far, the answer is clear: people aren’t buying crypto to trade. They’re buying it to live.