Pakistan Approves Virtual Assets Regulatory Authority to Oversee Cryptocurrency and Digital Finance

In a major development for Pakistan’s digital finance ambitions, the Federal Cabinet has formally approved the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA), marking the country’s first dedicated institutional framework for regulating blockchain technology, cryptocurrencies, and digital tokens.

The decision, hailed as a foundational move for the nation’s virtual economy, was announced by the Office of the Special Assistant to the Prime Minister/Minister of State on Blockchain and Crypto, Bilal Bin Saqib. The new authority will operate as an independent regulator, with the mandate to license, supervise, and monitor Virtual Asset Service Providers (VASPs), in compliance with Financial Action Task Force (FATF) guidelines and international regulatory standards.

PVARA: A Game-Changer in Pakistan’s Crypto Journey

Once legislated, PVARA will play a critical role in creating a secure, transparent, and innovation-driven digital asset ecosystem. The authority will be responsible for:

• Licensing and oversight of VASPs
• Implementation of anti-money laundering (AML) and counter-terrorist financing (CTF) protocols
• Setting technical and operational standards
• Mitigating cyber and financial risks
• Ensuring consumer protection and market integrity

The authority will work in coordination with institutions like the SECP, the State Bank of Pakistan, the Ministry of IT, the Ministry of Law, and international stakeholders such as the IMF and the World Bank.

PCC’s Role: Building the Regulatory Foundation

The move follows the momentum generated by the Pakistan Crypto Council (PCC), launched on March 14, 2025, and chaired by Finance Minister Muhammad Aurangzeb with Bilal Bin Saqib as CEO. The PCC was instrumental in shaping Pakistan’s national strategy on blockchain, DeFi, and tokenized assets.

Since its inception, the PCC has led dialogues across public and private sectors, hosted global crypto leaders, and positioned Pakistan as a serious contender in the blockchain world.

Notably, former Binance CEO Changpeng Zhao (CZ) and other global figures have joined the Council as strategic advisors, signaling growing confidence in Pakistan’s direction.

Bitcoin Reserve and Energy Strategy Signal Big Moves

In a surprise announcement at the Bitcoin 2025 Conference in Las Vegas on May 28, Bilal Bin Saqib revealed Pakistan’s plan to establish its first Strategic Bitcoin Reserve, a sovereign store of Bitcoin aimed at macroeconomic resilience and digital asset diversification.

This was paired with the government’s pledge to allocate 2,000 megawatts of surplus electricity to Bitcoin mining operations and AI data centers, capitalizing on underutilized energy sources like hydropower and solar in regions such as Khyber Pakhtunkhwa and Balochistan.

Officials confirmed that strategic partnerships are already underway to ensure these data-heavy operations are eco-friendly, secure, and export-oriented.

Global Alignment and Compliance

PVARA’s legal foundation will be aligned with the FATF Travel Rule, Basel crypto asset exposure standards, and OECD digital tax frameworks. It aims to eliminate informal crypto channels by formalizing trade, bringing $300 billion in annual trading volume into the legal fold, and setting Pakistan on a credible path to become a regional crypto hub.

International observers see this development as part of a broader trend, with countries like the UAE, Singapore, and El Salvador embracing digital finance. Pakistan’s model, however, stands out for its integration of regulatory oversight, energy strategy, and sovereign investment.

A Youth-Driven Digital Frontier

With over 40 million estimated crypto users and 70% of the population under the age of 30, Pakistan represents one of the world’s largest untapped crypto markets. Until now, this market functioned largely in regulatory grey zones, exposing users to risks and excluding institutional players.

The Cabinet’s approval of PVARA is expected to bring this ecosystem into the formal economy, fostering legal clarity, investor confidence, and tax compliance.

Pakistan is taking a bold and structured leap into the future of finance. With our population, digital infrastructure, and regulatory roadmap aligned, we are ready to lead South Asia into the next wave of economic innovation.

-PCC statement read

Pakistan’s approval of PVARA is more than regulatory housekeeping; it’s a strategic pivot toward digital sovereignty. By combining robust policy with real-world infrastructure and inclusive governance, Pakistan is not only embracing the crypto future but also preparing to lead it responsibly.

If implemented effectively, this regulatory ecosystem could unlock billions in FDI, expand fintech inclusion, and boost fiscal revenues, all while giving millions of young Pakistanis a stake in the global digital economy.