The Federal Cabinet of Pakistan has officially approved the formation of the Pakistan Virtual Assets Regulatory Authority (PVARA), marking a transformative step in the country’s evolving digital finance landscape. This decision sets the stage for Pakistan to establish a dedicated and comprehensive regulatory framework aimed at overseeing its burgeoning digital assets ecosystem, which includes cryptocurrencies, blockchain platforms, and other tokenized financial instruments.
The newly proposed authority will function as an independent regulator with a clear mandate: to license, supervise, and monitor virtual asset service providers (VASPs) operating within the country. This framework will be carefully aligned with international standards, particularly the guidelines of the Financial Action Task Force (FATF), to ensure Pakistan’s compliance with global anti-money laundering (AML) and counter-terrorism financing (CTF) protocols.
This milestone follows a series of ambitious moves by the Pakistani government to position the country as a forward-looking player in the global digital economy. Just under four months ago, on 14 March 2025, Pakistan launched the Pakistan Crypto Council (PCC), spearheaded by Finance Minister Muhammad Aurangzeb as Chairman and Bilal Bin Saqib, Special Assistant to the Prime Minister on Blockchain and Crypto, serving as CEO with the status of Minister of State. Since its inception, the PCC has driven a coordinated national agenda to responsibly integrate blockchain technologies and digital currencies into Pakistan’s financial system.
The PCC has actively sought to leverage global expertise, inviting notable figures such as former Binance CEO Changpeng Zhao (CZ) to act as strategic advisors. It also brings together key government institutions, including the Securities and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan, the Ministry of Law, and the Ministry of Information Technology. This multi-institutional approach reflects Pakistan’s recognition that regulating digital assets requires collaboration across all critical sectors of the economy.
Earlier in May, at the Bitcoin 2025 Conference in Las Vegas, Bilal Bin Saqib announced the creation of Pakistan’s first Strategic Bitcoin Reserve. Designed to hold Bitcoin as a sovereign asset, this initiative aims to enhance macroeconomic stability, diversify national reserves, and tap into the long-term value potential of digital currencies. This announcement was paired with news of Pakistan allocating 2,000 megawatts of surplus electricity to power Bitcoin mining and AI data centers, using the country’s underutilized energy resources to generate new economic streams.
With the Cabinet now greenlighting PVARA, Pakistan is preparing to implement a formal regulatory body that will not only issue licenses and supervise technical standards for VASPs but also ensure robust consumer protection, enforce AML measures, and manage cybersecurity risks tied to digital asset transactions. The authority will work closely with international bodies such as the IMF and World Bank to maintain adherence to evolving global financial standards.
This series of initiatives underscores Pakistan’s ambition to become a regional hub for digital assets and blockchain innovation. As one of the most youthful nations in the world—with over 70% of its 240 million citizens under the age of 30—Pakistan is already witnessing strong grassroots adoption of cryptocurrencies and blockchain technologies. Despite past regulatory uncertainties, industry insiders estimate that more than 40 million Pakistanis engage with crypto markets, driving an informal trading volume of approximately $300 billion annually.
By moving to regulate and integrate this dynamic sector through PVARA, along with strategic energy and reserve policies, Pakistan is laying down critical infrastructure to build trust, attract foreign investment, and create a secure and inclusive digital economy. These steps highlight the country’s proactive vision of using its demographic strengths and natural resources to cement its role as a competitive player in the future of global finance.
