Crypto could raise remittances to $50b, says ECAP chairman

Cryptocurrency could significantly boost Pakistan's remittance inflows if it evolves into a stable digital payment medium, projecting annual inflows to rise from $38 billion to $50 billion, said Chairman of the Exchange Companies Association of Pakistan (ECAP) Malik Muhammad Bostan.

He made these remarks during a meeting with Pakistan Crypto Council (PCC) CEO Bilal Bin Saqib, alongside ECAP President Zafar Paracha and other officials.

Bostan said that faster and low-cost digital transactions through crypto platforms could transform the remittance landscape by enabling overseas Pakistanis to transfer funds within minutes instead of relying on conventional banking channels. He noted that such efficiency gains could encourage higher inflows through formal channels, strengthening Pakistan's external account.

He credited the younger leadership behind the Pakistan Crypto Council for securing legal recognition of crypto-related initiatives in the country, describing it as a step aligned with global digital finance trends. Cryptocurrency is in sync with the demands of the digital era, he said.

Officials at the meeting revealed that regulatory progress has already begun. The State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) have allowed individuals interested in crypto trading to open dedicated crypto accounts in banks, subject to obtaining a no-objection certificate (NOC) from the PCC.

Participants noted that about 40 million Pakistanis are currently engaged in crypto trading, facing transaction costs of 5-6%. However, with the introduction of formal digital licensing, these costs could fall to nearly 1%, making crypto transactions more efficient and accessible.

The meeting further discussed ongoing coordination among the SBP, SECP and the PCC to develop a comprehensive regulatory framework. Officials said the framework would ensure compliance with international standards, including Financial Action Task Force (FATF) requirements and customer due diligence (CDD) protocols, to promote transparency and mitigate financial crime risks.