In a landmark move for South Asia’s fintech landscape, Pakistan has officially established the Pakistan Virtual Assets Regulatory Authority (PVARA). This independent regulatory body is set to oversee, license, and supervise the country’s virtual asset service providers (VASPs) as Pakistan embraces its growing digital economy.
Future-Ready Framework for Crypto Oversight
The formation of PVARA marks a strategic shift in Pakistan’s regulatory direction, aligning it with global financial innovation standards. The authority will ensure compliance with international frameworks, including those set by the Financial Action Task Force (FATF). Its mandate includes:
- Licensing digital asset firms
- Monitoring industry activity
- Enforcing anti-money laundering and consumer protection measures
Federal Minister for Finance and Revenue, Muhammad Aurangzeb, emphasized the importance of “regulating not just to catch up, but to lead.” According to him, the country aims to become a hub for responsible crypto innovation, attracting both local and foreign investment.
Robert “Bo” Hines, left, shaking hands with Bilal bin Saqib
Pakistan’s Bold Pivot to Digital Finance
This move follows the Ministry of Finance’s endorsement in late May, which described the launch of PVARA as “a critical inflexion point.” The regulator is part of a broader push toward digital transformation, including crypto integration, AI innovation, and blockchain adoption.
In May, the government allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI data centers, reflecting its commitment to unlocking economic value from excess infrastructure.
Navigating International Pressure
Despite the forward-looking strategy, Pakistan faces resistance. The International Monetary Fund (IMF) recently rejected a proposal for subsidized energy to mining operations. Nevertheless, Pakistan continues to develop a Web3 ecosystem through local partnerships and international collaboration.
Strategic Global Engagement
Minister of State for Crypto and Blockchain, Bilal Bin Saqib, has held high-level meetings with:
- Brandon Lutnick, CEO of Cantor Fitzgerald
- NYC Mayor Eric Adams, to explore cooperation between New York and Pakistan
- Robert “Bo” Hines, Executive Director of the U.S. Council on Digital Assets
These discussions focused on Bitcoin reserves, tokenization, and long-term crypto strategies, signaling Pakistan’s global ambition in digital finance.
With PVARA now active, Pakistan is no longer on the sidelines — it is positioning itself as a serious player in the global digital asset economy, creating a safer, more regulated environment for innovation and investment.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.