ISLAMABAD: The federal cabinet has formally approved the establishment of the “Pakistan Virtual Assets Regulatory Authority (PVARA)”, marking a significant step toward developing a comprehensive legal and regulatory framework for digital assets in the country.
According to an official statement issued late Monday, the new authority will operate as an independent regulator tasked with licensing, supervising, and monitoring Virtual Asset Service Providers (VASPs) in alignment with Financial Action Task Force (FATF) standards and international best practices.
This move follows the creation of the Pakistan Crypto Council (PCC) on March 14, 2025, signaling the start of a new chapter in Pakistan’s digital finance landscape.
Led by Finance Minister Muhammad Aurangzeb as Chairman and Bilal Bin Saqib, Special Assistant to the Prime Minister on Blockchain and Crypto (Minister of State), the PCC has spearheaded a nationwide initiative to regulate and promote blockchain, digital currencies, and tokenised assets in a balanced and innovation-friendly manner.
The PCC has also welcomed global blockchain figures—including former Binance CEO Changpeng Zhao (CZ)—as strategic advisers to support the development of Pakistan’s regulatory framework.
The Council includes major institutional stakeholders such as the Chairman of the Securities and Exchange Commission of Pakistan (SECP), the Governor of the State Bank, and federal secretaries from the Law and Information Technology ministries, ensuring a coordinated, whole-of-government approach.
Momentum continued with a major announcement on May 28, 2025, at the Bitcoin 2025 Conference in Las Vegas, where Bilal Bin Saqib introduced Pakistan’s first Strategic Bitcoin Reserve, aimed at securing long-term national economic resilience.
To support the growing digital economy, the government has also allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI data centers—capitalizing on unused energy potential to power high-tech infrastructure.
Strategic partnerships are being pursued to ensure that blockchain operations remain sustainable and economically productive.
The cabinet’s green light for PVARA is a pivotal milestone. Once legislated, the authority will issue licenses, set technical standards, and ensure compliance with global institutions such as the FATF, IMF, and World Bank. It will also manage anti-money laundering efforts, cyber risk protocols, and consumer protection in the digital asset space.
This integrated strategy—combining sovereign crypto reserves, energy deployment, and regulatory safeguards—positions Pakistan as a potential digital asset hub in South Asia.
With a population of 240 million, a tech-savvy youth majority (over 70% under age 30), and an estimated 40 million crypto users, Pakistan has a strong foundation for building a vibrant digital asset economy. Despite past regulatory uncertainty, annual crypto trading volume through informal channels is estimated at $300 billion, indicating immense untapped potential.
By fostering trust, attracting foreign investment, and encouraging innovation, Pakistan is laying the groundwork for a secure, inclusive, and future-ready digital economy.
