Pakistan has launched Pakistan’s virtual asset regulator

Pakistan has launched Pakistan Virtual Asset Regulatory Authority (PVARA), a virtual asset regulator, to streamline the operation of its growing cryptocurrency ecosystem.

The new regulatory body, established by the Pakistan government, is tasked with aligning Pakistan with global standards, supporting digital finance innovation and regulating the $30 million crypto market.

Pakistan launches virtual asset regulators

The Pakistani government officially established Pakistan’s Virtual Asset Regulator (PVARA) to oversee the rapidly expanding cryptocurrency and digital asset sector.

The decision was confirmed by the Ministry of Finance in a statement following Cabinet-level approval. The firm described the launch as a “groundbreaking step” towards establishing a legal and institutional framework for monitoring the country’s digital asset industry.

PVARA will serve as an independent regulatory body responsible for licensing, supervision and monitoring of virtual asset service providers (VASPs) across Pakistan. Money Laundering Ensuring compliance with anti-money laundering (AML) laws, managing cybersecurity risks, and protecting users who participate in crypto-related transactions are also categorized as regulatory bodies.

With the establishment of Pvara, Pakistan brings the regulatory environment one step closer to an international framework, particularly the framework outlined as the Financial Action Task Force (FATF).

A senior government official commented on the development, saying that creating virtual asset regulations is a key turning point in Pakistan’s digital economy.

He said once the platform is operated, it will issue licenses, set technical standards and coordinate compliance with international regulatory bodies such as the FATF, IMF and the World Bank.

This regulatory step is an effort to justify Pakistan’s digital assets sector, which has grown rapidly in recent years despite previously unclear legal frameworks. The industry has a crypto user base of over 40 million, with an estimated annual trading volume of $300 billion.

Pakistan continues to commit to other Bitcoin plans

Bilal Bin Saqib, CEO of Pakistan Crypto Council (PCC), has advocated for regulatory clarity and has been committed to promoting the potential of Pakistan’s digital assets.

After the launch of Pvara, Bin Saqib said the region has over 40 million crypto users and that Pakistan has estimated $300 billion in annual trading volume positions as one of the “most promising frontier markets for digital assets.”

In a social media post shared on May 29th, he added:

In addition to the regulatory framework, the Pakistani government has outlined a strategic roadmap for integrating cryptocurrencies and blockchain into economic planning. One important initiative will include allocation of 2,000 megawatts of surplus electricity to support Bitcoin mining operations and artificial intelligence (AI) data centers.

The Ministry of Finance said that the coordinated approach of the Pakistan government will not only serve as a regional hub for digital finance innovation, but will also help ensure that energy-intensive businesses are environmentally responsible.

Earlier this year, the government announced plans to establish Pakistan’s strategic Bitcoin reserve. They promote protected areas as a way to increase the stability of the domestic macroeconomics, especially in an era of economic volatility and currency devaluation. It is one of the first cryptographic preparations for such sovereignty in the region.