If you want a straight yes-or-no answer on crypto mining in Pakistan, the honest starting point is that the country’s rules have been summarised in sharply different ways depending on who is doing the summarising. Mining, owning coins, moving money through banks, and treating cryptocurrency as legal tender are separate questions, and Pakistani institutions have answered them with very different levels of clarity. What follows sets out what has actually been stated, who stated it, and where the record remains unsettled.
Mining is not the same question as buying or paying
Most public statements from Pakistani institutions have concerned cryptocurrencies as money: whether they count as legal tender, whether the banking system may be used for them, and whether they may be used for financial transactions. Mining — producing new coins by running computing hardware — is a different activity, and it has been addressed far less directly than trading and payments. Keeping those strands apart explains most of the contradictions you will run into online. A page can be accurate about payment restrictions and still say nothing meaningful about whether you may switch on a mining rig.
What the State Bank of Pakistan has said
In April 2018, the State Bank of Pakistan (SBP) declared that cryptocurrencies are not legal and not recognised, issued or guaranteed by the government. In 2018 the central bank also declared that it had not authorized or licensed any individual or entity for the issuance, sale, purchase, exchange, or investment in virtual currencies like bitcoin and others, and said digital currencies were not a legal tender issued under the bank’s guarantee.
The SBP has also drawn a line between blockchain and cryptocurrency. SBP spokesman Abid Qamar told The Express Tribune that the deployment of blockchain technology does not mean Pakistan has allowed international financial transactions in bitcoin and cryptocurrencies, which remain banned in the country. That distinction matters for anyone reading upbeat coverage of blockchain pilots: use of the underlying technology has not been presented as permission for cryptocurrency transactions.
Beyond the central bank, the Sindh High Court, the federal government and the State Bank of Pakistan recommended a complete ban on cryptos. Those positions concern cryptocurrencies and transactions in them. None of them names mining itself as the prohibited activity, which is why mining sits in a grey area rather than a clearly marked one.
Why answers about mining conflict
Compliance guidance published by Sumsub in January 2026 states that bitcoin mining is legal and that, in general, crypto mining is not prohibited in Pakistan. A guide from Lightspark reads the position very differently, stating that as of May 2026 cryptocurrencies are banned in Pakistan and all related transactions are considered illegal under current regulations. A summary from Freeman Law adds a further wrinkle, stating that the central bank clarified that Pakistan has not banned cryptocurrency, easing its position from a statement in 2018.
Those are not differences of emphasis. They are incompatible readings of the same regulatory record, published by organisations that work in this area professionally. The practical conclusion for a reader is to distrust any flat assertion, in either direction, that is not tied to a dated and named source, and to confirm the current position with a qualified adviser or with the regulator before spending money on hardware or electricity.
Signs that the position has been moving
Pakistan’s engagement with digital assets has visibly changed even where the formal rules have not. In May 2025 a news video reported that Pakistan’s stance on cryptocurrency remains legally rigid despite growing government-level engagement with digital assets. A video report from September 2025 put Pakistan’s crypto market at $21 billion and referred to plans to launch a central bank-backed digital currency (CBDC), after crypto had earlier been declared illegal.
Read those together and the shape of the situation becomes clearer. A state-backed digital currency and a large privately held market are both described in this coverage; neither is a statement that privately issued cryptocurrencies have been legalised, and neither speaks directly to mining.
Tax: how crypto gains have been framed
Tax treatment has been discussed even while the legal status is disputed. A proposal on the table holds that cryptocurrencies should be defined among securities under Section 37A of Income Tax Ordinance, 2001, under which assets are charged at the rate of 15 per cent. Section 37A of the Ordinance deals with the collection of capital gain tax on disposal of securities. That framing is phrased as what should be done rather than as a description of a settled regime, so treat it as a proposal rather than as a finished rulebook.
How widely cryptocurrency is held in Pakistan
Ownership is not marginal. It is estimated that over 9.0 million people, 4.1% of Pakistan’s total population, currently own cryptocurrency. Put another way, an estimated 4.1% of Pakistanis, totalling about 9 million people, own some form of cryptocurrencies. These are estimates rather than registry counts, and they describe ownership, not mining activity.
The energy question that follows mining everywhere
Mining’s resource footprint is one reason governments regulate it separately from trading and holding. A UN study published in October 2023 found that global Bitcoin mining is highly dependent on fossil fuels, with worrying impacts on water and land in addition to a significant carbon footprint. Energy use and environmental scrutiny are therefore live considerations for any mining operation, independent of the legal question.
How mining has been treated elsewhere
Pakistan is not deciding in isolation. Wikipedia’s article on Bitcoin records Russia at 16% and China at 14% of bitcoin mining market share, noting that all cryptocurrency trading and mining were banned there in 2021. In other words, a substantial share of global mining was still attributed to China after a national ban, which is a useful reminder that a stated prohibition and observed activity are not the same thing.
Is crypto mining halal?
Religious guidance on crypto has been issued by national bodies, and those rulings do not all address the same activity. The use of crypto assets as a currency is forbidden for Muslims, according to Indonesia’s council of religious leaders. That ruling concerns the use of crypto assets as currency and was issued by a body in Indonesia, so it does not by itself determine how mining is judged in Pakistan.
What to check before you mine
- Confirm the current legal position with the regulator or a qualified adviser rather than relying on a dated summary, because published guides disagree with each other on this exact point.
- Be precise about which activity you are asking about. Statements about transactions, payments and legal tender status do not automatically answer a question about mining.
- Keep in mind that the State Bank of Pakistan has said it had not authorized or licensed any individual or entity for the issuance, sale, purchase, exchange, or investment in virtual currencies like bitcoin and others.
- Factor in energy cost and environmental scrutiny, which follow mining regardless of the legal answer.
Frequently asked questions
Is crypto mining banned in Pakistan?
The available official statements address cryptocurrencies and transactions in them rather than mining as an activity, and third-party guidance splits. Sumsub states that bitcoin mining is legal and that in general crypto mining is not prohibited in Pakistan, while Lightspark states that as of May 2026 cryptocurrencies are banned in Pakistan and all related transactions are considered illegal.
Is it legal to buy cryptocurrency in Pakistan?
In April 2018, the State Bank of Pakistan declared that cryptocurrencies are not legal and not recognised, issued or guaranteed by the government. The Sindh High Court, the federal government and the State Bank of Pakistan recommended a complete ban on cryptos.
Is blockchain illegal in Pakistan?
SBP spokesman Abid Qamar told The Express Tribune that the deployment of blockchain technology does not mean Pakistan has allowed international financial transactions in bitcoin and cryptocurrencies, which remain banned in the country.
Does Pakistan support Bitcoin?
Bitcoin is not currently legal in Pakistan. Freeman Law notes that the central bank clarified that Pakistan has not banned cryptocurrency, easing its position from a statement in 2018, so descriptions of the position vary by source.
Is Binance allowed in Pakistan?
Cryptocurrencies are not legal tender in Pakistan, and the State Bank of Pakistan has said it had not authorized or licensed any individual or entity for the issuance, sale, purchase, exchange, or investment in virtual currencies like bitcoin and others. That statement is not specific to any one platform.
Is Bitcoin taxed in Pakistan?
A proposal holds that cryptocurrencies should be defined among securities under Section 37A of Income Tax Ordinance, 2001, under which assets are charged at the rate of 15 per cent. Section 37A of the Ordinance deals with the collection of capital gain tax on disposal of securities.
Which Pakistani banks support cryptocurrency?
The State Bank of Pakistan has said it had not authorized or licensed any individual or entity for the issuance, sale, purchase, exchange, or investment in virtual currencies like bitcoin and others, and that bitcoin and cryptocurrencies remain banned for international financial transactions in the country.
How many crypto owners are there in Pakistan?
An estimated 4.1% of Pakistanis, totalling about 9 million people, own some form of cryptocurrencies.
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