Digital Asset Regulation Moves Forward as SBP Consults PVARA

Pakistan’s move towards a regulated digital asset ecosystem is gaining momentum as the State Bank of Pakistan (SBP) and the Pakistan Virtual Assets Regulatory Authority (PVARA) continue to engage on policy and implementation matters. A recent meeting between SBP Governor Jameel Ahmad and PVARA Chairman Bilal bin Saqib marked another important step in shaping the country’s virtual assets framework.

According to a post shared by PVARA’s chairman, the discussion centered on digital asset adoption, the potential launch of a central bank digital currency (CBDC), and Pakistan’s broader regulatory framework for virtual assets. The engagement reflects growing coordination between monetary authorities and regulators as Pakistan looks to modernise its financial system and respond to global technological shifts.

Digital Asset Regulation Moves Forward as SBP Consults PVARA

The foundation for this effort was laid earlier this year when President Asif Ali Zardari promulgated the Pakistan Virtual Assets Ordinance 2025. Issued in July, the ordinance aims to license, regulate, and supervise virtual assets and related service providers. Following the ordinance, the government established PVARA as the dedicated body to oversee virtual asset and blockchain-related activities in the country.

In parallel, the Ministry of Finance has taken steps to explore practical applications of blockchain technology. It recently signed a memorandum of understanding with Binance, one of the world’s leading digital asset and blockchain companies. The MoU aims to explore areas of cooperation, including tokenization initiatives involving state-owned assets.

Under this arrangement, Pakistan may explore tokenising up to $2 billion worth of assets. These could include sovereign bonds, treasury bills, and commodity reserves such as oil, gas, and metals. Finance Minister Muhammad Aurangzeb described the agreement as a strong signal of Pakistan’s reform direction, stressing that the focus would now be on effective and timely execution.

PVARA has also issued preliminary no-objection certificates to Binance and HTX, allowing them to begin local licensing processes. These clearances enable the exchanges to register with Pakistan’s anti-money laundering system and prepare full licence applications. However, they do not permit operational activities at this stage, underscoring the authorities’ cautious and phased approach.

See Also: Pakistan Set to Launch Its First Sovereign Stablecoin – PVARA Chairman Confirms

Global industry figures have welcomed these developments. Binance founder Changpeng Zhao, who serves as a strategic adviser to the Pakistan Crypto Council, called the MoU a positive signal for both Pakistan and the international blockchain community. He noted that it could pave the way for full-scale deployment of tokenisation initiatives in the future.

Pakistan’s interest in digital assets is backed by significant local participation. PVARA estimates that the country ranks among the world’s largest crypto markets by retail activity, with around 40 million users and annual trading volumes exceeding $300 billion.

Meanwhile, the SBP has confirmed that it is preparing a pilot project for a digital currency and finalising legislation related to virtual assets. Alongside these reforms, the central bank’s foreign exchange reserves have strengthened, rising to nearly $15.9 billion following a recent IMF disbursement. Together, these developments suggest a period of cautious optimism as Pakistan balances innovation with financial stability.