ISLAMABAD: The Federal Cabinet has approved the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA). This historic move lays the groundwork for a comprehensive legal and regulatory framework to govern the country’s fast-growing digital asset ecosystem.
Once enacted into law, PVARA will function as an independent regulatory body responsible for licensing, monitoring, and supervising Virtual Asset Service Providers (VASPs) nationwide.
According to an official press release, the authority will ensure full compliance with Financial Action Task Force (FATF) guidelines and international best practices.
PVARA’s core responsibilities will include:
- Issuing licenses to VASPs
- Setting and enforcing technical and operational standards
- Implementing anti-money laundering (AML) and counter-terror financing protocols
- Managing cybersecurity risks across virtual asset transactions
The Cabinet’s approval comes just four months after the formation of the Pakistan Crypto Council (PCC) on March 14, 2025. Led by Finance Minister Muhammad Aurangzeb (PCC Chairman) and Special Assistant to the Prime Minister on Blockchain and Crypto Bilal Bin Saqib, the PCC has spearheaded a nationwide push to responsibly regulate blockchain technology, digital currencies, and tokenized assets.
The PCC includes top-level institutional stakeholders such as the Chairman of the Securities and Exchange Commission of Pakistan (SECP), Governor of the State Bank of Pakistan, Federal Secretary of Law, and Federal Secretary of IT, ensuring a unified, government-wide approach to policy and oversight.
Prominent global voices, including former Binance CEO Changpeng Zhao (CZ), have joined the PCC as strategic advisors to help shape Pakistan’s regulatory trajectory.
Further demonstrating its commitment to the digital finance revolution, Pakistan made international headlines by announcing the launch of its first Strategic Bitcoin Reserve at the Bitcoin 2025 Conference in Las Vegas on May 28. The reserve aims to establish Bitcoin as a sovereign reserve asset, strengthening Pakistan’s long-term economic resilience.
To support blockchain and AI development, the government has also allocated 2,000 megawatts of surplus electricity for use in Bitcoin mining and AI data centers. This initiative seeks to monetize excess energy by powering high-revenue digital infrastructure, with a focus on economic and environmental sustainability through strategic partnerships.
The creation of PVARA is being hailed as a transformative milestone in Pakistan’s digital finance journey. Combined with infrastructure investment, energy-backed blockchain operations, and sovereign crypto holdings, it reflects a cohesive national strategy to lead in the global crypto economy.
With an estimated 40 million crypto users and an annual informal trading volume of $300 billion, Pakistan is already among the most active digital asset markets in the region.
A young, tech-savvy population — over 70% of whom are under the age of 30 — along with a 250 million-strong population base and rapidly evolving digital infrastructure, makes Pakistan uniquely positioned to formalize and scale a dynamic, innovation-driven crypto economy.
