Pakistan launches a crypto regulatory authority to oversee digital assets, ensure compliance, and foster innovation in the growing crypto space.
After years of doubt, rumour, and policy flip-flops, Pakistan has finally embarked on the world of digital finance with both feet. The nation has now formally established the Pakistan Virtual Assets Regulatory Authority (PVARA)—a bold and overdue measure to regulate, foster, and mould its fast-expanding crypto ecosystem.
With more than 40 million crypto users and an estimated $300 billion passing through digital asset platforms each year, the time was ripe.
What is PVARA?
The new regulator, working autonomously under the supervision of the Pakistan Crypto Council (PCC), will be responsible for everything from issuing licenses to crypto firms and exchanges to applying global standards on anti-money laundering, security, and investor protection.
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Consider it Pakistan’s version of the SEC, but with a blockchain twist.
“We are not only following trends—we are laying down infrastructure for the future of finance,” stated Finance Minister Muhammad Aurangzeb, who is also chairing PCC.
What Will It Do?
The authority will:
• License and supervise Virtual Asset Service Providers (VASPs)
• Implement FATF-compliant regimes on anti-money laundering
• Collaborate with the IMF and the World Bank to harmonize global best practices
• Foster innovation through facilitation of AI-based mining centers and a proposed Strategic Bitcoin Reserve
There’s also increased chatter regarding public-private partnerships involving top players in international crypto. Tech players such as Michael Saylor and former Binance CEO Changpeng Zhao are reportedly advising the council.
Why It Matters
For years, Pakistan balanced crypto euphoria and measured skepticism. Banks prohibited it. The central bank raised an eyebrow. But regular Pakistanis—particularly young people and freelancers—kept investing, earning, and learning. With PVARA’s introduction, the government has indicated a dramatic shift: crypto has come to stay, and it’s high time to get it right.
What’s Next?
• Licensing mechanisms for exchanges and wallet providers are likely to come out later this year.
• A Crypto Innovation Sandbox will be launched for startups developing blockchain, DeFi, and AI-driven finance.
• Education outreach and investor protection campaigns are also planned.
This is more than mere regulatory housekeeping. It’s a watershed moment. Pakistan, long regarded as a frontier market in international finance, is wagering that adopting digital assets could be the secret to unlocking an era of economic empowerment.
