The Federal Cabinet has approved the creation of the Pakistan Virtual Assets Regulatory Authority (PVARA), marking a structured step toward building a national regulatory framework for virtual assets. PVARA will function as an autonomous body responsible for licensing, supervising, and monitoring virtual asset service providers (VASPs) across Pakistan. Its operations will be in full compliance with FATF guidelines and aligned with global regulatory standards to ensure transparency, accountability, and financial integrity within the digital asset ecosystem.
This development builds on the momentum generated since the launch of the Pakistan Crypto Council (PCC) on March 14, 2025. PCC was established to drive forward Pakistan’s digital finance strategy, led by Finance Minister Muhammad Aurangzeb, who serves as Chairman, and Special Assistant to the Prime Minister on Blockchain and Crypto, Bilal Bin Saqib, who holds the status of Minister of State and serves as CEO. The Council has played a central role in initiating structured discussions around blockchain regulation and tokenized assets, while also encouraging innovation through collaboration with global crypto experts.
International blockchain thought leaders, including former Binance CEO Changpeng Zhao (CZ), have joined the PCC as strategic advisors. Their involvement has strengthened Pakistan’s efforts to build a sound regulatory environment for digital currencies. Key government stakeholders are part of the Council, such as the Chairman of SECP, Governor of State Bank of Pakistan, Federal Secretary of Law, and Federal Secretary of Information Technology. This coordination across institutions reflects a comprehensive policy direction for virtual asset regulation.
In May 2025, Pakistan announced the formation of its first Strategic Bitcoin Reserve at the Bitcoin 2025 Conference in Las Vegas. The reserve, revealed by Bilal Bin Saqib, aims to enhance Pakistan’s macroeconomic resilience through long-term Bitcoin holdings. Furthering its ambitions in blockchain and digital finance, the government has designated 2,000 megawatts of surplus electricity for use in Bitcoin mining and AI data centers. These energy allocations are designed to make use of Pakistan’s untapped power capacity while attracting investment in advanced digital infrastructure.
The newly approved PVARA will have a broad mandate. It will issue licenses to VASPs, establish technical benchmarks, enforce compliance with international financial oversight bodies like FATF, IMF, and World Bank, and implement anti-money laundering and consumer protection protocols. This regulatory structure aims to build trust in digital asset markets, support sustainable industry growth, and protect against cyber and financial risks.
With a population of over 240 million and a median age below 30, Pakistan is home to one of the world’s largest untapped digital asset user bases. Industry estimates suggest that over 40 million Pakistanis currently engage with crypto platforms, with informal trading volumes surpassing $300 billion annually. Youth adoption of blockchain solutions has been especially high, even in the absence of clear regulation. The establishment of PVARA provides a formal structure to support, regulate, and expand this growing ecosystem, positioning Pakistan as a potentially influential market for digital finance in South Asia.
