Pakistan Launches Virtual Assets Regulatory Authority to Oversee Crypto Sector

Highlights:

• Pakistan has formed the Virtual Assets Regulatory Authority to regulate the crypto industry.
• New authority to align the crypto sector with FATF and global standards.
• Over 40 million users drive $300 billion in crypto trade in Pakistan.

Pakistan has officially launched the Virtual Assets Regulatory Authority (PVARA) to govern and control its booming digital assets market. The move is part of the broader government initiative toward digital transformation. As per the local media report, the authority will operate independently by issuing licenses and tracking Virtual Asset Service Providers (VASPs).

The supervisory authority will adhere to the Financial Action Task Force (FATF) standards and international standards. Pakistan has been moving swiftly in the past few months to incorporate digital currency into the economy. The government had previously banned cryptocurrencies in 2018 but has dropped that decision.

Pakistan launches PVARA to regulate digital assets

Pakistan's federal government has officially launched the Pakistan Virtual Assets Regulatory Authority (PVARA), an independent body to oversee the country's digital asset industry. According to @Cointelegraph, the new authority…

— CoinNess Global (@CoinnessGL) July 8, 2025

In March, the Pakistan Crypto Council (PCC) was established to create a crypto-friendly framework. The council comprises key regulatory expertise of the Pakistani financial and IT institutions. The cross-sector strategy provides a good basis for the integration of blockchain at the economic level.

Virtual Assets Regulatory Authority and National Crypto Framework

In April, the government also approved a national policy on digital assets. This was followed by May’s announcement of a strategic Bitcoin reserve, indicating a shift from caution to active participation. According to the Pakistan Ministry of Finance, this regulatory framework will design a safe and inclusive digital economy.

The officials have stated that the Virtual Assets Regulatory Authority will oversee anti-money laundering regulations and network security. The authority will also assist in the shaping of adherence to the IMF and World Bank. Moreover, Pakistan expects to coordinate its energy policy with this strategy.

The nation recently allocated 2,000 megawatts of excess power to Bitcoin mining and AI data centers. Such a step promotes both economic growth and technological progress. Authorities seek to explore untapped energy sources to promote blockchain development. Pakistan is also working on international partnerships. Government officials have engaged in meetings with international crypto leaders and discussed the prospects of collaborations. These engagements involved discussions on tokenization, blockchain infrastructure, and Pakistan’s Web3 roadmap.

Economic Vision and International Appeal

The creation of the PVARA is an indication of Pakistan aiming to rank among the leaders in the digital economy of South Asia. According to industry data, there are more than 40 million crypto users in the country. The informal market reportedly handles $300 billion in annual trading volume.

The government is concerned about regulating this place to incorporate this economic activity into the official financial system. The roles of the authority are to provide standards, publish operation guidelines and deal with compliance. It continues to focus on the establishment of trust, investor protection, and the attraction of foreign investment.

In addition, the PCC has onboarded international professionals to encourage the blockchain venture in Pakistan. These include influential individuals working in the private and government sectors. Such advisers will provide strategic information to speed up policies and investor confidence. This regulatory shift has also been proposed to aid financial inclusion. More than 70% of the Pakistani population is below the age of 30, and a fair number of youth have already started pursuing digital assets. A regulated framework would serve to safeguard such users and enhance innovation.

Meanwhile, challenges remain in aligning national efforts with international funding bodies. Recently, there was resistance from the IMF over energy subsidies for mining. However, the government continues to push ahead with its crypto-focused strategy.