ISLAMABAD – The federal cabinet of Pakistan has approved the creation of the Pakistan Virtual Assets Regulatory Authority (PVARA), a dedicated regulator tasked with licensing, monitoring, and supervising virtual asset service providers (VASPs) within the country. This development, announced by the office of the minister of state for blockchain and cryptocurrency, marks a landmark step toward regulating Pakistan’s rapidly expanding digital assets sector.
The establishment of PVARA follows closely on the heels of earlier government initiatives, including the formation of the Pakistan Crypto Council (PCC) in March 2025 to develop a legal framework for cryptocurrency trading aimed at attracting international investment. In April, Pakistan introduced its first formal policy framework governing digital currencies and their related businesses. In May, the government unveiled the nation’s first strategic bitcoin reserve during the Bitcoin 2025 conference in Las Vegas, underscoring its commitment to embracing blockchain innovation.
The ministerial office highlighted that PVARA will operate as an independent authority fully aligned with Financial Action Task Force (FATF) guidelines and international best practices. Its responsibilities will extend to enforcing public protection mechanisms, anti-money laundering (AML) measures, and cyber risk mitigation related to virtual asset transactions.
Pakistan’s coordinated strategy includes leveraging sovereign asset reserves and surplus energy for digital asset operations, combined with robust regulatory oversight. This approach reflects the country’s ambition to emerge as a leading digital assets hub in South Asia.
“By building trust, attracting foreign investment, and fostering innovation in the blockchain sector, Pakistan is setting the foundations for a secure, inclusive, and future-proof digital economy,” the statement noted.
The country, considered among the world’s most promising frontier markets for digital assets, reportedly has over 40 million crypto users and an estimated annual crypto trading volume of $300 billion, much of which currently takes place through informal channels.
This shift toward digital currency regulation represents a major policy reversal for Pakistan, which banned cryptocurrency transactions in 2018 due to financial risks and lack of regulatory frameworks.
