Pakistan has launched the Pakistan Virtual Assets Regulatory Authority (PVARA), the virtual assets regulatory authority, to streamline the operations of its growing cryptocurrency ecosystem. The new regulatory body established by the Pakistani government is tasked with aligning Pakistan with global standards, supporting digital finance innovation, and regulating the country’s $300B crypto market. Pakistan launches its virtual assets regulatory authority The Government of Pakistan has officially established the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee its fast-expanding cryptocurrency and digital assets sector. The decision follows a cabinet-level approval and was confirmed by the Ministry of Finance in a statement. The office described the launch as “a landmark step” towards establishing a legal and institutional framework for monitoring the country’s digital assets industry. PVARA will function as an independent regulatory body tasked with licensing, supervising, and monitoring Virtual Asset Service Providers (VASPs) across Pakistan. Ensuring compliance with anti-money laundering (AML) laws, managing cybersecurity risks, and safeguarding users participating in crypto-related transactions also fall under the regulatory body’s purview. The establishment of PVARA brings Pakistan a step closer to aligning its regulatory environment with international frameworks, particularly those outlined by the Financial Action Task Force (FATF). A senior government official commented on the development, saying that the creation of the virtual assets regulation was a critical turning point in Pakistan’s digital economy. He stated that once the platform is operational, it will issue licenses, set technical standards, and coordinate compliance with international regulatory bodies like the FATF, IMF, and World Bank. This regulatory step is in an effort to legitimize Pakistan’s digital assets sector, which has grown rapidly in recent years despite the previously unclear legal framework. The industry has a crypto user base exceeding 40 million and an estimated annual trading volume reaching $300B. Pakistan remains committed to other Bitcoin plans The Pakistan Crypto Council’s (PCC) CEO, Bilal Bin Saqib, has been instrumental in advocating for regulatory clarity and promoting the potential of digital assets in Pakistan. Speaking after PVARA’s launch, Bin Saqib remarked that the region’s over 40 million crypto users and estimated $300B in annual trading volume positions Pakistan as one of the “most promising frontier markets for digital assets.” In a social media post shared on May 29, he added, “Once misunderstood. Now unstoppable. BTC & Pakistan are flipping the script.” Alongside the regulatory framework, the Pakistani government has outlined a strategic roadmap to integrate cryptocurrencies and blockchain into its economic planning. One significant initiative involves the allocation of 2,000 megawatts of surplus electricity to support Bitcoin mining operations and artificial intelligence (AI) data centers. The Ministry of Finance said that the Pakistani government’s coordinated approach will help the country not only become a regional hub for digital finance innovation but also ensure that the energy-intensive operations remain environmentally responsible. Earlier this year, the government announced plans to establish Pakistan’s strategic Bitcoin reserve. It touts the reserve as a means to enhance macroeconomic stability within the country, especially in times of economic volatility or currency devaluation. It would be one of the first such sovereign crypto reserves in the region. KEY Difference Wire helps crypto brands break through and dominate headlines fast
