NA Panel Accuses Government of Unauthorized Cryptocurrency Initiative
In a recent and controversial development, a standing committee of Pakistan’s National Assembly has accused the federal government of launching a cryptocurrency-related project without seeking prior legal or parliamentary approval. This revelation has sparked serious concerns about the transparency and constitutional legality of the government’s actions in the emerging digital finance sector.
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Government’s Crypto Push: Innovation or Overreach?
Over the past several months, Pakistan has taken bold steps toward embracing blockchain and digital currency technologies. The Pakistan Crypto Council (PCC) was one of these important initiatives, as were the ambitious plans to establish a national Bitcoin reserve. Furthermore, the government reportedly allocated 2,000 megawatts of power to support Bitcoin mining and AI data centers.
These efforts have been led by federal finance officials and private tech entrepreneurs. However, critics argue that such large-scale and sensitive projects were launched without necessary legal procedures or parliamentary oversight, raising red flags about executive overreach.
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No Legal Framework, High Financial Risks
The NA committee emphasized that there should never be a digital finance project implemented without a solid legislative foundation. Although the government may have noble intentions to modernize the economy, this process must go hand-in-hand with laws that ensure transparency, accountability, and protection of public interest.
Currently, Pakistan lacks a clear legal structure to regulate cryptocurrencies. As a result, security threats, financial fraud, and scams are more likely to target the general public. It is difficult to hold bad actors accountable without a legal mechanism, leaving ordinary users vulnerable. ---
International Pressure and Concerns About Security Pakistan also faces pressure from international financial watchdogs like the Financial Action Task Force (FATF), which requires strict regulation of financial systems to curb money laundering and terrorist financing. Launching crypto initiatives without adequate laws could potentially put Pakistan’s global financial standing at risk.
In recent months, there have been several alarming incidents involving crypto-related crimes such as wallet theft, cyber fraud, and even physical crimes linked to digital currency assets — further strengthening the case for immediate regulation.
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The Path Forward: Regulation Before Execution
To resolve this growing issue, the following steps are critically needed:
1. To define and regulate the use of cryptocurrencies, draft and pass comprehensive legislation. 2. Suspend all crypto-related projects until they receive formal approval from parliament.
3. Engage experts, lawmakers, and regulatory bodies to jointly create a national crypto policy.
4. Introduce consumer protection laws to safeguard the public from fraud and digital theft.
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Conclusion: Embrace Progress, But Within the Law
Pakistan stands at the edge of a digital transformation in its financial sector. However, innovation must be pursued within the boundaries of law and the constitution. Launching such massive initiatives without legal backing could do more harm than good, undermining public trust and exposing the country to significant risks.
The way forward is not to reject technology, but to regulate it smartly and transparently. By aligning legal processes with technological advancement, Pakistan can ensure a secure and sustainable future in the world of digital finance.
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