Pakistan's Stance on NFTs: What You Actually Need to Know

TL;DR: NFTs aren’t illegal in Pakistan, but they’re in a grey zone. The State Bank of Pakistan (SBP) hasn’t banned them, yet hasn’t embraced them either.

The Current Status

Here’s the thing—Pakistan doesn’t have explicit NFT laws. That sounds like freedom, but it’s more like regulatory limbo. The SBP has made clear that:

• Crypto isn’t legal tender: You can’t use virtual currencies (which NFTs rely on) like you’d use rupees
• No official remittance channels: You can’t legally move value via crypto/tokens for money transfers
• Not explicitly banned: But individuals and businesses aren’t authorized to operate in this space either

The Real Concerns

Why the hesitation? The SBP worries about anonymity enabling illegal activities and zero legal recourse if you get scammed. Valid concerns, honestly.

Where It Gets Interesting

From a legal standpoint, NFT transactions fall under the same crypto umbrella as Bitcoin or altcoins. But here’s the nuance:

1. IP Rights Matter: You need to own or have rights to whatever you’re minting as an NFT. This part is actually enforceable under Pakistani IP law.
2. Fractionalized NFTs Could Be Securities: If you’re splitting ownership into chunks, regulators might classify it as a security—that opens a whole compliance can of worms.
3. Islamic Finance Angle: Interestingly, Islamic scholars say NFT transactions are permissible if the sale mechanics are legit. The Metaverse/NFT trademarks are already getting published by Pakistan’s Trademark Registry, suggesting some institutional acceptance brewing.

Bottom Line

You can create and trade NFTs in Pakistan, but you’re doing it without explicit legal protection or blessing. It’s DIY regulatory territory—high risk, high reward, and zero backstop if things go sideways.