PVARA Considers Lifting SBP’s Ban on Virtual Currencies, Unveils Roadmap for AI-Driven Regulation
The Pakistan Virtual Assets Regulatory Authority (PVARA) has taken its first major step towards reshaping the country’s financial landscape by deliberating on the withdrawal of the State Bank of Pakistan’s (SBP) 2018 ban on virtual currencies. The discussion took place during the authority’s inaugural board meeting held in Islamabad on Tuesday, marking what officials described as a “defining moment” for Pakistan’s virtual assets ecosystem.
In its official statement, PVARA revealed that the board reviewed SBP’s BPRD Circular No. 03 of 2018, which had prohibited financial institutions from engaging in transactions involving digital currencies such as Bitcoin, Litecoin, Pakcoin, and other Initial Coin Offering (ICO) tokens. At the time, the central bank had stressed that these assets were not recognized as legal tender, nor were they backed or guaranteed by the Government of Pakistan. As a result, banks and payment service providers were instructed to refrain from trading, investing, or facilitating customer transactions in digital currencies, with violations flagged to the Financial Monitoring Unit (FMU) as suspicious activity.
Tuesday’s meeting was attended by prominent stakeholders, including Federal Finance Minister Muhammad Aurangzeb, Minister of State for Crypto and Blockchain and PVARA Chairman Bilal bin Saqib, the SBP Governor, federal secretaries, and representatives of key regulatory and enforcement bodies. Aurangzeb praised the establishment of PVARA as a transformative milestone, highlighting its potential to position Pakistan as a leader in the global digital assets economy.
The board also outlined an ambitious roadmap to strengthen regulatory oversight. Key priorities include developing a licensing framework, aligning with international AML/CFT (Anti-Money Laundering and Countering Financing of Terrorism) standards, forming committees on taxation and regulatory drafting, and launching a complaint portal in collaboration with the National Cyber Crime Investigation Agency (NCCIA).
PVARA Chairman Bilal bin Saqib emphasized the authority’s dual role of safeguarding financial integrity while fostering innovation and investment. He noted that regular consultations, including bi-monthly meetings in the first six months, will ensure transparency and stakeholder engagement.
With deliberations on lifting the crypto ban and a clear strategy for AI-driven risk management, PVARA’s actions signal a potential paradigm shift in Pakistan’s regulatory and financial approach to virtual assets.
