Why Pakistan Ranks 3rd-4th in Global Crypto Adoption Despite Past Restrictions

When Pakistan banned cryptocurrency in 2018, few expected it to become one of the world’s top three adopters just seven years later. Yet by 2025, the country was ranked 3rd globally in crypto adoption by Chainalysis - behind only India and the United States. How did a nation that once shut down all crypto exchanges rise to such a position? The answer isn’t speculation. It’s survival.

From Ban to Breakthrough

In 2018, the State Bank of Pakistan told banks and financial firms: no crypto transactions. Any company offering Bitcoin or Ethereum services was shut down. The message was clear: digital currencies were illegal, dangerous, and unregulated. People didn’t stop using them - they just went underground. Mobile apps, peer-to-peer trades, and offshore wallets became the new normal.

By 2024, things started shifting. Inflation hit 38%. The Pakistani rupee lost nearly half its value against the dollar in five years. People saw their savings evaporate. Banks offered 12% interest rates, but inflation ate it all. Meanwhile, USDT (Tether), a stablecoin pegged to the dollar, started appearing on WhatsApp groups, local marketplaces, and even small shopkeepers’ QR codes.

By mid-2025, the government didn’t just reverse its stance - it rebuilt the system. The Pakistan Virtual Assets Regulatory Authority (PVARA) was launched in July 2025. It wasn’t a token effort. PVARA required all exchanges to register, follow KYC rules, report suspicious activity, and hold reserves. For the first time, crypto businesses had legal protection. And users? They had trust.

How Pakistan Became a Crypto Powerhouse

Chainalysis didn’t rank Pakistan based on how many people owned Bitcoin. They measured real usage: how much value flowed in, how often it moved, and who was using it. Pakistan scored high because people weren’t gambling. They were paying bills, sending money home, and protecting savings.

About 20 million Pakistanis - nearly 9% of the population - now hold crypto. That’s more than double the global average of 6.9%. Most of them use stablecoins, not volatile coins like Bitcoin. Why? Because stablecoins act like digital dollars. A factory worker in Lahore can get paid in USDT. His cousin in Dubai can send him rent in USDT. He uses it to buy groceries from a local vendor who accepts it. No bank. No fees. No delays.

Remittances are the biggest driver. Pakistan receives over $30 billion in remittances every year - mostly from workers in the Gulf and Europe. Traditional services like Western Union charge 5-10%. Crypto cuts that to under 1%. A worker in Saudi Arabia sends $500 in USDT. It arrives in 12 minutes. His family cashes out via a local exchange in Faisalabad. That’s not speculation. That’s daily life.

Who’s Behind the Surge?

The Pakistan Crypto Council, led by CEO Bin Saqib, became the bridge between government and industry. It didn’t lobby for tax breaks. It pushed for clear rules. Exchanges now need licenses. Wallet providers must store user data securely. Audits are mandatory. This isn’t Silicon Valley-style libertarianism. It’s Singapore-style regulation: strict, transparent, and practical.

International players took notice. In August 2025, World Liberty Financial - linked to the Trump family’s private blockchain initiative - signed a partnership with PVARA. They’re not investing billions. They’re helping set up compliance tools, training local regulators, and connecting Pakistani exchanges to global liquidity networks. The goal? Make crypto work for ordinary people, not just traders.

Meanwhile, Bitcoin advocates like Michael Saylor and MicroStrategy quietly increased their exposure to Pakistan’s market. They don’t own Pakistani exchanges. They’re investing in infrastructure - cloud servers, data centers, and blockchain education programs. Their interest isn’t charity. It’s opportunity. Pakistan’s young, tech-savvy population is a goldmine for decentralized finance.

Why Other Rankings Show Pakistan at 9th

Not every report agrees Pakistan is 3rd. Some list it at 9th. Why the difference?

It comes down to what’s being measured. Chainalysis looks at transaction volume adjusted for economic size. Other rankings count how many people own crypto, regardless of how much they use it. Nigeria, for example, has high ownership rates - but low transaction activity. Many Nigerians hold crypto as a savings tool, but rarely spend it. Pakistanis use it like cash.

Vietnam and India also rank high. But India’s adoption is driven by retail investors betting on Bitcoin. Pakistan’s is driven by necessity. That’s the difference between a bubble and a backbone.

What’s Next for Pakistan’s Crypto Scene?

The government is now talking about launching a national blockchain for land records and tax collection. Banks are testing crypto-backed loans. Small businesses are starting to accept USDT as payment. Even street vendors in Karachi have QR codes for crypto payments.

But risks remain. If the political situation shifts - say, if the military’s influence over economic policy grows - crypto could become a tool for geopolitical leverage. The partnership with World Liberty Financial, while useful, raises questions about who really controls the direction of this growth.

Still, the foundation is solid. People aren’t using crypto because it’s trendy. They’re using it because it works. When your savings vanish in a year, and banks won’t let you send money abroad, crypto isn’t a gamble. It’s a lifeline.

Can Other Countries Copy This?

Yes - but only if they’re willing to admit their systems are broken. Countries with high inflation, weak banking, and heavy remittance flows - like Egypt, Bangladesh, or Turkey - are watching Pakistan closely. They see what happens when you stop fighting innovation and start using it.

The lesson isn’t to legalize crypto. It’s to recognize when people are already using it - and then give them rules that protect them, not punish them.

What This Means for You

If you’re from Pakistan: you’re not an outlier. You’re ahead of the curve. Crypto isn’t something you need to learn about. It’s something you’re already living.

If you’re from another country: don’t assume crypto adoption means speculation. In places like Pakistan, it means survival. And that’s a far more powerful force than any market hype.