Crypto could lift remittances to $50 billion, says ECAP chairman

ISLAMABAD: Cryptocurrency could help increase Pakistan’s annual remittance inflows from $38 billion to $50 billion if it develops into a stable digital payment channel, Exchange Companies Association of Pakistan (ECAP) Chairman Malik Muhammad Bostan said during a meeting with Pakistan Crypto Council (PCC) Chief Executive Officer Bilal Bin Saqib.

The meeting was also attended by ECAP President Zafar Paracha and other officials. Bostan said quicker and cheaper digital transfers through crypto platforms could reshape the remittance system by allowing overseas Pakistanis to send money within minutes instead of using conventional banking routes.

He said this improvement in speed and cost could encourage more remittances to come through formal channels and support Pakistan’s external account. Bostan also praised the younger leadership of the Pakistan Crypto Council for helping secure legal recognition for crypto-related initiatives in the country, calling it a move in line with global trends in digital finance.

He said cryptocurrency was in step with the needs of the digital age.

Regulatory steps discussed

Officials present at the meeting said progress on regulation had already started. According to the officials, the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) have permitted individuals interested in crypto trading to open dedicated crypto accounts in banks, provided they first obtain a no-objection certificate (NOC) from the PCC.

Participants in the meeting said around 40 million Pakistanis are currently involved in crypto trading and are bearing transaction costs of 5-6%. They said those costs could decline to nearly 1% once formal digital licensing is introduced, making such transactions more efficient and easier to access.

The discussion also covered coordination among the SBP, SECP and PCC on a broader regulatory framework for the sector. Officials said the proposed framework would be designed to meet international standards, including Financial Action Task Force (FATF) requirements and customer due diligence (CDD) protocols.

They said these measures were aimed at improving transparency and reducing the risk of financial crimes as the country moves toward a more structured system for crypto-related activity.

Bostan’s remarks linked the potential expansion of crypto-based payment systems with higher remittance inflows, lower transaction costs and greater use of formal financial channels, while officials at the meeting pointed to ongoing efforts to put in place a regulatory structure for the sector.