cryptocurrency tokens. The State Bank of Pakistan (SBP) has issued several warnings and advisories, cautioning the public against the risks associated with cryptocurrencies. While cryptocurrencies are not outright illegal in Pakistan, they operate in a gray area where no specific legal framework exists to regulate their use. The SBP has also instructed banks and financial institutions to refrain from providing services related to virtual currencies and tokens.

This creates a situation where individuals can technically own and trade cryptocurrencies, but they do so at their own risk, without any legal protections or recourse in case of fraud or disputes. As a result, the cryptocurrency market in Pakistan remains largely unregulated and operates primarily through informal channels.