Author

Jai Pratap

Author

Jai Pratap

About Author

Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

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Last updated: 

May 29, 2025

Despite increasing government-backed initiatives promoting Bitcoin adoption, Pakistan’s top financial authorities the State Bank and Ministry of Finance clarified on Thursday that cryptocurrency remains banned, with all related transactions deemed illegal under existing laws.

As per local media reports, during a recent meeting official meeting on Finance and Revenue, Finance Secretary Imdadullah Bosal clarified that although the prime minister has established a Crypto Council, led by the finance minister through an executive order to explore digital asset policy, the country’s cryptocurrency ban remains firmly in place under regulations set by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP)

The central bank issued a directive in 2024 declaring Bitcoin and other cryptocurrencies illegal, a position that remains unchanged.

Pakistan’s Crypto Council CEO Bilal Bin Saqib, who was recently named as PM’s assistant on crypto and blockchain, announced at the Bitcoin 2025 conference in Las Vegas that the country is moving ahead with a Bitcoin reserve.

Officials Highlight Crypto Policy Inconsistency

Committee members voiced concern over the government’s inconsistency in regards to crypto policy, questioning why the public was being encouraged to invest in crypto despite its legal ban, warning that such actions could expose investors to serious risks.

Recently Pakistan’s government announced to allocate 2,000 megawatts of electricity to power Bitcoin mining and artificial intelligence (AI) data centres. Committee members raised questions about whether the bitcoin mining would be in government or private sector hands, and noted that illegal hawala channels would likely be replaced by unregulated digital transfers.

The State Bank of Pakistan does not recognize crypto assets. In 2022, the SBP issued an official advisory urging the public to exercise caution and avoid trading in cryptocurrencies.

The committee’s debate on cryptocurrency was sparked by a proposed bill on digital currency regulations introduced by MNA Sharmila Farooqi. She emphasized the urgent need for a regulatory framework to curb potential money laundering risks, particularly in light of Pakistan’s recent removal from the Financial Action Task Force (FATF) grey list.

Michigan has recently taken a significant step in the realm of cryptocurrency policy, becoming the latest US state to propose the creation of a strategic Bitcoin reserve.

On February 13, Representatives Bryan Posthumus and Ron Robinson introduced HB 4087, a bill aimed at amending the state’s Management and Budget Act. This proposed legislation would allow Michigan to establish a Bitcoin reserve using funds from the state’s general and economic stabilization accounts.

Michigan Joins Growing List Of States Considering Crypto Reserve Bill

The initiative is part of a broader trend in which states across the country are considering crypto reserves as a means of diversification and long-term financial planning. Michigan’s move brings the total number of US states with similar legislation to twenty.

Representative Posthumus, an outspoken advocate for crypto adoption initially expressed his enthusiasm on Elon Musk’s social media platform X, encouraging Michigan to join states like Texas in leading crypto policy initiatives.

Interestingly, Texas Senator Charles Schwertner had introduced a comparable bill to the Texas Senate just a day before Michigan’s proposal.

Michigan can and should join Texas in leading on crypto policy by signing into law my bill creating the Michigan Crypto Strategic Reserve. https://t.co/x2Yke3uWTn

— Rep. Bryan Posthumus (@posthumus_bryan) February 13, 2025

Key Provisions and Potential Impact

Under the proposed legislation, Michigan’s treasurer would have the authority to allocate up to 10% of the state’s general and economic stabilization funds into cryptocurrencies.

The bill also includes provisions for lending the state’s crypto holdings, provided such transactions do not increase financial risk. Additionally, Michigan’s crypto investments would be required to be held through secure custody solutions or exchange-traded products issued by registered investment companies.

Notably, this proposal reflects a growing recognition among states of the strategic value that digital assets might offer. Michigan’s state pension fund already holds exposure to Bitcoin and Ethereum through exchange-traded funds, signaling an existing interest in blockchain-based investments.

In addition to the proposed Bitcoin reserve, Representative Posthumus has floated the idea of a state-backed stablecoin, dubbed “MichCoin.”

This hypothetical digital currency would be tied to Michigan’s existing gold and silver reserves, offering an approach to leveraging state-held assets in a blockchain-based environment.

So what is MichCoin?

– It’s a Stablecoin, which I believe the state of Michigan should create.

– It will have real value — tied to our gold and silver reserves.

– It could become the most powerful financial asset in our state’s history. pic.twitter.com/15n0H3Wy2x

— Rep. Bryan Posthumus (@posthumus_bryan) February 13, 2025

If enacted, Michigan’s bill would align the state with other jurisdictions exploring or enacting crypto investment strategies. While twenty states now have similar legislation advancing through their legislatures, Michigan’s potential adoption of a Bitcoin reserve could set a precedent for others still on the fence.

Featured image created with DALL-E, Chart from TradingView