By Staff Reporter
ISLAMABAD: Pakistan has formally established the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee its rapidly expanding digital assets sector, a move aimed at aligning the country’s regulatory framework with international standards and attracting foreign investment.
The government announced the creation of PVARA on Monday, marking a significant step in its ambition to become a digital assets hub in South Asia.
The cabinet of Prime Minister Shehbaz Sharif approved the creation of PVARA, which will operate as an independent regulator responsible for licensing, monitoring, and supervising virtual asset service providers (VASPs).
The authority will ensure compliance with guidelines set by the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank, according to a statement issued by the Ministry of Finance.
“The federal cabinet has formally approved the summary for the creation of the PVARA, a landmark step towards establishing a comprehensive legal and institutional framework for overseeing the country’s rapidly growing digital assets ecosystem,” the statement said.
“The cabinet’s approval is a critical inflexion point in this journey. Once legislated, the authority will be responsible for issuing licences, supervising VASPs, setting technical standards, and coordinating compliance with FATF, IMF, and World Bank guidelines.”
PVARA will also oversee public protection mechanisms, anti-money laundering protocols, and cyber risk mitigation across all virtual asset transactions within Pakistan, the ministry added.
This regulatory development is part of a broader strategy to position Pakistan as a leader in the digital assets space. “This coordinated approach, combining sovereign asset reserves, surplus energy deployment and robust regulation, reflects Pakistan’s ambition to become a digital assets hub in South Asia,” the Ministry of Finance statement said.
“By building trust, attracting foreign investment, and fostering innovation in the blockchain sector, Pakistan is setting the foundations for a secure, inclusive, and future-proof digital economy.”
The announcement comes less than four months after the launch of the Pakistan Crypto Council (PCC) on March 14, a body that has been pivotal in shaping the country’s digital finance landscape.
The PCC, comprising key institutional stakeholders including the Securities and Exchange Commission of Pakistan chairman, the State Bank governor, and federal secretaries of Law and Information Technology divisions, has led a nationwide push to regulate and enable blockchain technology, digital currencies, and tokenized assets in a responsible and innovation-friendly manner.
The council has also welcomed international blockchain leaders, such as former Binance CEO Changpeng Zhao, as strategic advisors to help shape Pakistan’s regulatory outlook.
On May 28, PCC Chief Executive Bilal Bin Saqib announced the formation of Pakistan’s first Strategic Bitcoin Reserve at the Bitcoin 2025 Conference in Las Vegas. The sovereign reserve is intended to hold Bitcoin for long-term national benefit and macroeconomic resilience, signaling Pakistan’s intent to integrate cryptocurrencies into its economic strategy.
Further advancing this momentum, the government has allocated 2,000 megawatts of surplus electricity for Bitcoin mining and artificial intelligence (AI) data centers. “Strategic partnerships are underway to ensure that energy-intensive blockchain infrastructure is both sustainable and revenue-generating,” the Ministry of Finance said, highlighting how Pakistan is leveraging its untapped energy potential to power the future of digital finance and computation.
Pakistan is emerging as one of the most promising frontier markets for digital assets, with over 40 million crypto users and an estimated annual trading volume of $300 billion, according to industry officials.
Despite previous regulatory ambiguity, the country’s youth have been early adopters of blockchain technologies, with over 70% of the population under the age of 30. The establishment of PVARA is expected to enhance trust in Pakistan’s digital assets sector, attract foreign investment, and foster innovation.
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