The federal government has formally initiated the implementation of its virtual asset regulatory framework, starting with a high-level meeting in Islamabad that brought together banks, exchange companies, and representatives from the jewellery sector. The meeting focused on briefing stakeholders on the Virtual Assets Act, 2025, which received official approval earlier this month following clearance from the Cabinet, Prime Minister, and President.
The newly enacted law introduces the Pakistan Virtual Asset Regulatory Authority (PVARA), a dedicated body responsible for licensing, regulating, and monitoring all entities involved in virtual asset activities, including cryptocurrencies. PVARA will oversee market operations in line with global standards, particularly those outlined by the Financial Action Task Force, to ensure transparency and prevent misuse of digital assets.
During the meeting, exchange companies and banks were informed that they would be eligible to apply for licenses to operate within the virtual asset ecosystem under the new legislative framework. This move signals the government’s intent to bring traditional financial institutions into the fold of regulated digital finance, enabling them to engage with cryptocurrencies and related digital instruments lawfully.
Governor Jameel Ahmed of the central bank also participated in the session, confirming that work is underway on parallel legislation to support the introduction of a central bank digital currency (CBDC). He indicated that a pilot project for the CBDC is in development, further reflecting the state’s evolving approach to digital financial infrastructure.
The regulatory structure introduced under the Virtual Assets Act follows the February 2025 announcement of the Pakistan Crypto Council, which was formed to support coordinated efforts in policymaking and the adoption of virtual assets. The establishment of PVARA now adds an institutional mechanism to this effort, placing Pakistan among a growing number of countries creating specialized authorities to manage crypto market dynamics.
Stakeholders were encouraged to align with the forthcoming licensing protocols and ensure their internal systems are in compliance with regulatory standards. The law covers not only trading and custody of cryptocurrencies but also addresses broader categories of virtual assets that may emerge as the market matures.
The creation of a comprehensive regulatory authority and the inclusion of mainstream financial institutions in licensed crypto operations marks a structured approach toward integrating digital assets into Pakistan’s financial landscape. The initiative is expected to support both innovation and financial accountability as virtual assets continue to gain traction globally and locally.
