Pakistan moves to regulate crypto with PVARA approval

July 08, 2025 (MLN): In a landmark move aimed at transforming Pakistan into a regional hub for digital finance, the Federal Cabinet has formally approved the creation of the Pakistan Virtual Assets Regulatory Authority (PVARA).

This development marks a critical step toward establishing a comprehensive legal and institutional framework for regulating the country’s rapidly expanding digital asset ecosystem.

Once legislated, PVARA will operate as an independent regulator, responsible for licensing, monitoring, and supervising Virtual Asset Service Providers (VASPs).

The authority will ensure full alignment with Financial Action Task Force (FATF) standards and global best practices, as per the press release issued.

It will also set technical standards, issue licenses, enforce anti-money laundering (AML) measures, and oversee cyber risk management across all virtual asset transactions in the country.

The approval comes less than four months after the launch of the Pakistan Crypto Council (PCC) on March 14, 2025.

Spearheaded by Finance Minister Muhammad Aurangzeb (PCC Chairman) and Bilal Bin Saqib, Special Assistant to the Prime Minister on Blockchain and Crypto (with Minister of State status), the PCC has led a nationwide agenda.

This agenda focuses on responsibly regulating blockchain technology, digital currencies, and tokenized assets.

The PCC brings together top institutional stakeholders, including the Chairman of the Securities and Exchange Commission of Pakistan (SECP), Governor of the State Bank of Pakistan, Federal Secretary of Law, and Federal Secretary of IT.

This collaboration forms a unified, whole-of-government approach to digital asset regulation.

Global thought leaders such as former Binance CEO Changpeng Zhao (CZ) have also joined the Council as strategic advisors, contributing to shaping Pakistan’s regulatory outlook.

Building on this momentum, the government announced the creation of Pakistan’s first Strategic Bitcoin Reserve at the Bitcoin 2025 Conference in Las Vegas on May 28, 2025.

This move signals Pakistan’s intent to hold Bitcoin as a sovereign reserve asset for long-term macroeconomic resilience.

Additionally, to support energy-intensive blockchain and AI operations, the government has allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI data centers.

This initiative aims to monetize excess energy through sustainable and high-revenue digital infrastructure.

Strategic partnerships are being formed to ensure this initiative is both economically and environmentally sustainable.

The approval of PVARA is viewed as a pivotal inflection point in Pakistan’s digital finance journey.

This coordinated approach combining sovereign digital reserves, infrastructure investment, and regulatory oversight positions Pakistan as a serious contender in the global crypto economy.

With over 40 million crypto users and an estimated $300 billion in annual informal trading volume, Pakistan is already one of the most active frontier markets in digital assets.

A youthful population over 70% under the age of 30, combined with a population of 240m and rapidly improving digital infrastructure, makes Pakistan uniquely positioned to formalize and grow a robust, innovation-led crypto economy.

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