Pakistan pushes back against token ban

• Pakistan's crypto regulator is opposing a proposed ban on asset-backed tokens.
• The regulator said these tokens should be treated differently from speculative cryptocurrencies.
• The move aims to support tokenised finance while maintaining regulatory oversight.

Pakistan's crypto regulator is seeking to prevent a proposed ban on asset-backed tokens, arguing they should remain available under an appropriate regulatory framework.

The regulator said asset-backed tokens represent real-world assets and should not be treated the same as highly speculative cryptocurrencies.

Officials said preserving access to regulated tokenised assets could encourage innovation while protecting investors and maintaining financial stability.

The proposal forms part of wider discussions on how Pakistan should regulate digital assets as blockchain adoption increases.

Supporters argue asset-backed tokens can improve access to traditional financial products by using blockchain technology to represent real-world assets.

Many jurisdictions are developing separate regulatory frameworks for tokenised real-world assets instead of applying blanket rules across all digital assets.

The debate highlights growing international efforts to balance innovation with investor protection as tokenisation becomes a larger part of the global financial system.