In a significant stride towards integrating digital assets into its financial framework, Pakistan has launched the Pakistan Virtual Assets Regulatory Authority (PVARA). This independent body is tasked with licensing, monitoring, and supervising virtual asset service providers (VASPs), ensuring compliance with international standards, particularly those set by the Financial Action Task Force (FATF). The establishment of PVARA marks a pivotal moment in Pakistan’s digital finance evolution, aiming to foster innovation while safeguarding consumers.
The journey towards this regulatory milestone began earlier this year with the formation of the Pakistan Crypto Council (PCC) on March 14, 2025. Chaired by Finance Minister Muhammad Aurangzeb, the PCC was created to develop policies and infrastructure for blockchain technology and digital assets within Pakistan. Bilal Bin Saqib, appointed as the CEO, has been instrumental in steering the council’s initiatives, including the integration of blockchain into the national financial landscape.
Investor Identification, Introduction, and negotiation.
A notable development under the PCC’s guidance was the partnership with Binance, a leading global cryptocurrency exchange. In December 2025, Pakistan signed a memorandum of understanding with Binance to explore the tokenization of up to $2 billion in sovereign assets, such as government bonds and commodity reserves. This initiative aims to enhance liquidity, attract investment, and increase transparency in Pakistan’s financial markets. Finance Minister Muhammad Aurangzeb emphasized that the agreement signaled Pakistan’s reform trajectory and a long-term partnership with Binance.
The formation of PVARA is a direct outcome of the Virtual Assets Ordinance, 2025, signed into law by President Asif Ali Zardari on July 8, 2025. This ordinance established PVARA as an autonomous federal regulatory body responsible for licensing, regulating, and supervising virtual asset services and service providers across Pakistan. The authority’s mandate includes issuing licenses, setting technical standards, and ensuring compliance with FATF guidelines, IMF, and World Bank policies. Additionally, PVARA is tasked with overseeing public protection mechanisms, anti-money laundering protocols, and cyber risk mitigation across all virtual asset transactions within the country.
Bilal Bin Saqib, who also serves as the Chairperson of PVARA, highlighted the authority’s role in creating a secure and transparent institutional framework for digital assets. He stated that PVARA’s establishment is a critical inflection point in Pakistan’s journey towards a comprehensive legal and institutional framework for overseeing the country’s rapidly growing digital assets ecosystem.
The regulatory framework introduced by PVARA requires all individuals or companies offering virtual asset services to obtain a license. This includes exchanges, wallet providers, mining companies, and advisory firms. Unlicensed activities are now subject to legal penalties, ensuring a more secure environment for digital asset transactions. The law also empowers PVARA to monitor transactions, ensure consumer protection, and penalize fraud, thereby enhancing transparency and trust in the digital asset market.
Pakistan’s digital asset market is among the largest unregulated markets globally, with nearly 40 million users and an estimated annual trading volume exceeding $300 billion. Recognizing the need for regulation in line with international standards, PVARA’s licensing process aims to ensure transparency, security, and compliance across the industry. By inviting global cryptocurrency exchanges and VASPs to apply for licenses, Pakistan seeks to formalize its vast digital asset market and establish oversight.
The establishment of PVARA and the regulatory framework it introduces are expected to boost trust, attract foreign investment, and encourage innovation in blockchain technology. This move lays the foundation for a safe and future-ready digital economy in Pakistan, positioning the country as a leader in the global blockchain race.
In summary, Pakistan’s proactive approach in establishing PVARA and the regulatory framework for digital assets reflects a commitment to integrating cryptocurrencies into the formal economy. By fostering innovation, ensuring consumer protection, and aligning with international standards, Pakistan aims to create a robust and secure digital asset ecosystem that attracts global investment and drives economic growth.
Be the first to comment