ISLAMABAD – In a landmark move, the federal cabinet has approved the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA), which will serve as the country’s central body for regulating and licensing digital asset service providers, including cryptocurrency exchanges and token platforms.
The authority has been formed under the Virtual Assets Act, 2025, with the aim of bringing Pakistan’s digital asset landscape in line with global standards set by FATF, the IMF, and the World Bank.
Mandate and Oversight
PVARA has been tasked with:
- Licensing and supervising virtual asset platforms such as crypto exchanges, wallets, DeFi services, and token issuers
- Enforcing strict anti-money laundering (AML) protocols and cybersecurity regulations
- Ensuring alignment with international financial guidelines
The authority will also monitor the tokenisation of real-world assets, providing a legal framework for innovation in the digital economy.
Institutional Structure
The newly formed regulatory body will include representation from:
- State Bank of Pakistan (SBP)
- Securities and Exchange Commission of Pakistan (SECP)
- Federal Board of Revenue (FBR)
- Ministries of Finance, Law, and IT
In addition, a Shariah Advisory Committee will oversee the compliance of digital financial services with Islamic principles, and a Virtual Assets Appellate Tribunal will handle disputes and appeals related to licensing.
Financial Innovation in Motion
The formation of PVARA builds upon recent steps taken to modernise Pakistan’s financial ecosystem, including:
- The launch of the Pakistan Crypto Council (PCC) earlier this year
- A pilot initiative for a Central Bank Digital Currency (CBDC)
- Exploration of Bitcoin reserves and blockchain integration in public finance
Why It Matters
Experts believe that with the creation of a dedicated regulatory body, Pakistan is positioning itself alongside countries like Singapore, the UAE, and India, where digital finance is being embraced under structured and secure legal regimes.
The initiative is also expected to unlock Pakistan’s estimated $25 billion informal crypto market, while protecting consumers and encouraging tech-driven economic inclusion.
This story has been reported by PakTribune. All rights reserved.
