Pakistan crypto ban: “Gov’t mines BTC but calls us criminals for doing same”—Karachi trader cries

An existing Pakistan crypto ban has resurfaced in the media, just a few days after the government declared support for Bitcoin mining. Karachi shopkeeper Ahmed Raza had never broken a law in his life until he started trading crypto to survive inflation. Now, like thousands of Pakistanis, he’s trapped in a financial paradox. “The government mines Bitcoin but calls us criminals for doing the same,” he says, checking over his shoulder mid-interview.

The human cost of the Pakistan crypto ban

According to reports, when Pakistan’s central bank banned cryptocurrencies in April 2024, it didn’t stop trading, it just forced it underground.

“MyBinanceP2P WhatsApp groups now have 50,000 members,” explains college student Mariam Khalid*, who turned to USDT when her family’s savings were decimated by 38% inflation. “The Pakistan crypto ban didn’t protect us—it just made everything riskier.”

The real irony? While ordinary Pakistanis face raids for trading $100 in crypto, the government has:

• Partnered with Chinese miners to exploit cheap electricity

• Announced plans for official Bitcoin reserves

• Granted mining farms police protection

Double Standards in the Dark?

At a dimly-lit internet café in Lahore, a group of traders demonstrates how they’ve adapted. “We trade in person now,” says software engineer Usman Shah*. “No bank transfers, just cash and trust.” He shows me a Telegram channel where members warn each other about FIA sting operations.

The Pakistan crypto ban has created bizarre realities:

• Farmers in Khyber Pakhtunkhwa rent out power connections to miners

• Wedding gold is increasingly being replaced by hidden crypto wallets

• The SECP’s own staff admit privately they hold USDT

“They Want the Revenue Without the Responsibility”

Finance Ministry insiders confirm the contradiction. “The state wants crypto profits without legalizing it,” one official confessed, speaking anonymously. “Mining brings dollars, but admitting that would mean overhauling the Pakistan crypto ban.”

The human toll is mounting. In May 2025, 23-year-old Ali Hassan became the first Pakistani sentenced under anti-crypto laws, getting 3 years for trading $2,300 in Bitcoin. His sister tells me: “They gave medals to the miners but prison to my brother.”

A Generation Betting on Bans Lifting

Despite the risks, crypto adoption keeps growing. Surveys show:

• 72% of young urban Pakistanis own some crypto

• P2P volumes exceed $1 billion monthly

• Crypto jobs listings have surged 400% on LinkedIn

“This ban can’t last,” predicts blockchain developer Farah Nadeem*. “When the government realizes they’re missing the next internet revolution, the Pakistan crypto ban will collapse under its own hypocrisy.”

For now, millions wait in the shadows, their digital wallets full but their legal status empty.

(Names changed due to security concerns.)