President Asif Ali Zardari has signed the Virtual Assets Ordinance, 2025, paving the way for Pakistan to formally regulate cryptocurrencies and virtual asset-related services. The ordinance creates the Pakistan Virtual Asset Regulatory Authority (PVARA), which will oversee licensing, compliance, supervision, and innovation within the virtual asset ecosystem. This move is seen as an attempt to bring Pakistan’s regulatory framework in line with international standards, including those outlined by the Financial Action Task Force (FATF).
The federal cabinet approved the establishment of PVARA earlier this week, positioning it as the central body for managing the emerging virtual assets sector. The authority will monitor and regulate virtual asset service providers, ensure adherence to compliance and reporting standards, and help prevent misuse of digital assets for money laundering or terrorist financing. The ordinance also supports innovation through a regulatory sandbox that will allow experimentation in a controlled environment, while ensuring sufficient oversight.
Although an official statement initially described the regulation as the ‘Virtual Assets Act, 2025,’ it was later clarified by government sources that it is, in fact, an ordinance issued under Article 89 of the Constitution. The ordinance, promulgated on July 8, 2025, allows the president to legislate on urgent matters when Parliament is not in session and remains valid for 120 days.
The structure of PVARA includes key stakeholders from Pakistan’s financial and regulatory sectors. The board will comprise the governor of the State Bank of Pakistan, secretaries of finance, law, and IT, and heads of the Securities and Exchange Commission of Pakistan (SECP) and the Federal Board of Revenue (FBR). Two independent directors with professional backgrounds in law, finance, technology, or virtual assets will also be appointed to the board, ensuring broader expertise in guiding regulatory functions.
Under the ordinance, virtual asset service providers are now required to obtain licenses and fulfill strict operational, compliance, and disclosure obligations. The introduction of a formal licensing regime is expected to increase transparency and reduce the risk of financial crimes linked to digital currencies. In addition, a Sharia Advisory Committee will be formed to ensure that any crypto-based financial products or services comply with Islamic finance principles.
To handle disputes and appeals related to PVARA’s regulatory decisions, a specialized Virtual Assets Appellate Tribunal will be established. The tribunal will consist of experts in law, finance, and emerging technologies, offering a mechanism for fair adjudication within the sector.
This regulatory development follows the establishment of the Pakistan Crypto Council (PCC) in March 2025 and represents a continued push toward legitimizing the digital finance landscape. With PVARA now operational, Pakistan aims to strike a balance between consumer protection, financial innovation, and global compliance, especially in the context of rising local interest in blockchain technology and crypto markets.
