Pakistan’s decision to legalize cryptocurrency in March 2025 marks a significant shift in its financial policy, moving away from past restrictions on digital assets. After years of uncertainty, the government has implemented a regulated framework for digital currencies. This move aligns with global trends, where countries are transitioning from banning crypto to regulating it. With this new legal framework, Pakistan aims to boost financial innovation, attract foreign investment, and create economic opportunities. The decision also carries implications for other Islamic nations, particularly those navigating uncertainty around cryptocurrency regulations. Countries like Bangladesh, Iran, and Iraq might now feel pressure to reconsider their approaches. If Pakistan successfully integrates cryptocurrency into its economy, it could set a precedent for other Muslim-majority nations, influencing their regulatory decisions.