Finance Ministry takes charge of crypto regulations, sidelining Science Ministry: report

The Ministry of Finance has taken the lead in shaping Pakistan’s virtual asset regulations, sidelining the Ministry of Science and Technology, which had been working for months to position itself as the custodian of cryptocurrency and digital assets, Dawn reported. 

Sources said the Ministry of Science, led by Dr. Khalid Maqbool Siddiqui, had been working closely with a multi-agency working group comprising nearly two dozen senior civil and military officials from 16 institutions to develop a regulatory framework. 

A summary had been finalised for cabinet approval, involving key stakeholders such as the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP), the Pakistan Telecommunication Authority (PTA), the Federal Board of Revenue (FBR), and intelligence agencies.

Documents indicate that the Rules of Business 1973 provided the Ministry of Science and Technology the mandate to lead this initiative, alongside the Ministry of IT, due to its role in scientific and technological development, venture capital promotion, and applied research. 

However, the finance ministry’s jurisdiction over financial policies, investments, and negotiations with international organizations allowed it to assert control over the matter.

The situation shifted after the recent visit of advisers to former U.S. President Donald Trump on digital assets, which highlighted the Ministry of Finance’s critical role in overseeing cryptocurrency policies. 

Using its financial jurisdiction, the finance ministry moved ahead with a proposed Pakistan Crypto Council in late February, a meeting that excluded the Ministry of Science and Technology.

Further solidifying its position, the government recently appointed British Pakistani entrepreneur Bilal Bin Saqib as chief adviser to the finance minister on digital assets in a pro bono capacity.

Despite this shift, sources within the science ministry insist that the matter is not yet settled. They argue that while financial aspects naturally fall under the finance ministry, the technical, regulatory, and developmental aspects of cryptocurrency should be handled by the science and IT ministries.

Any crypto-related operations in Pakistan—such as exchanges, digital wallets, and other financial activities—would require Non-Banking Financial Company (NBFC) registration under SECP regulations. This step is necessary for ensuring legal compliance, financial security, and consumer protection, and to prevent unauthorized activities.