Cabinet Approves Formation of Pakistan Virtual Assets Regulatory Authority

Islamabad, Pakistan – July 8, 2025— In a landmark move, the Federal Cabinet has formally approved the creation of thePakistan Virtual Assets Regulatory Authority (PVARA), paving the way for a comprehensive legal and institutional framework to regulate the country’s rapidly expanding digital assets ecosystem. The newly proposed authority will operate as an independent regulator, tasked with licensing, monitoring, and supervisingVirtual Asset Service Providers (VASPs)in Pakistan. The PVARA will ensure compliance withFinancial Action Task Force (FATF)guidelines and international best practices, a significant step towards aligning Pakistan’s crypto landscape with global standards. The decision comes just four months after Pakistan launched thePakistan Crypto Council (PCC)on March 14, 2025. Spearheaded by Finance MinisterMuhammad Aurangzebas Chairman andBilal Bin Saqib, Special Assistant to the Prime Minister on Blockchain and Crypto (with the status of Minister of State) as CEO, the PCC has led the country’s charge to responsibly regulate blockchain technology, digital currencies, and tokenized assets. The PCC has attracted international attention, welcoming global blockchain leaders including former Binance CEOChangpeng Zhao (CZ)as strategic advisors to shape Pakistan’s regulatory direction. The Council’s membership brings together key government stakeholders, including the Chairman of theSecurities and Exchange Commission of Pakistan (SECP), the Governor of theState Bank of Pakistan, and the Federal Secretaries of Law and Information Technology, ensuring a collaborative, whole-of-government approach. In May, Pakistan made headlines at theBitcoin 2025 Conference in Las Vegas, where Bilal Bin Saqib announced the launch of Pakistan’s firstStrategic Bitcoin Reserve— a sovereign reserve designed to hold Bitcoin for long-term macroeconomic resilience and national benefit. Adding to its ambitious plans, the government has also earmarked2,000 megawatts of surplus electricityforBitcoin miningandartificial intelligence (AI) data centers, tapping into Pakistan’s underutilized energy resources to fuel the future of digital finance and high-performance computing. Strategic partnerships are already in progress to ensure that the energy-intensive blockchain infrastructure remains sustainable and generates revenue. With the Cabinet’s green light for PVARA,Pakistan is now poised to legislate a robust virtual assetsregulatory framework. The authority will oversee licensing, technical standards, compliance with global anti-money laundering (AML) protocols, consumer protection, and cybersecurity for all virtual asset transactions nationwide. Industry experts view this coordinated approach — combining sovereign crypto reserves, surplus energy deployment, and comprehensive regulation — as a bold step towards positioning Pakistan as adigital assets hub in South Asia. The country is aiming to build trust, attract foreign investment, and encourage innovation in its growing blockchain sector. Pakistan already stands out as one of the most promising frontier markets for digital assets, with over40 million crypto usersand an estimated annual trading volume of$300 billionflowing through informal channels. Despite years of regulatory uncertainty, Pakistani youth — with over70% of the population under age 30— have been enthusiastic early adopters of blockchain technology. With a population of240 millionand rapidlyexpanding digital infrastructure, Pakistan’s formal entry into the regulated global crypto economy marks a new era for its digital finance ambitions.