Govt to License Banks and Exchange Companies for Virtual Asset Operations

Islamabad – July 30, 2025— The federal government has officially begun implementing its virtual asset regulatory framework with the aim of formalizing and regulating the growing digital asset space in Pakistan. A high-level meeting was held in Islamabad on Tuesday, bringing together key stakeholders including representatives from banks, exchange companies, and the jewellery sector. The session was organized to brief participants on the newly approvedVirtual Assets Act, 2025, which received formal clearance from the Cabinet, Prime Minister, and President on July 9, 2025. A cornerstone of the new law is the establishment of thePakistan Virtual Asset Regulatory Authority (PVARA)— a dedicated body that will oversee the licensing, regulation, and monitoring of all entities dealing in virtual assets, including cryptocurrencies. PVARA has been mandated to ensure compliance with international standards, particularly those outlined by theFinancial Action Task Force (FATF). During the briefing, stakeholders were informed thatbanks and exchange companies will be eligible for licensingunder the new framework, allowing them to operate in thevirtual asset sector in a regulatedmanner. Governor of theState Bank of Pakistan,Jameel Ahmed, who was also in attendance, reaffirmed the central bank’s commitment to digital transformation. He revealed that legislation for acentral bankdigital currency(CBDC)is in its final stages, with apilot projectexpected to be launched in the near future. The meeting follows the government’s earlier announcement inFebruary 2025to form thePakistan Crypto Council, a body tasked with coordinating national policy and promoting the responsible adoption of virtual assets. This move marks a significant step toward integrating Pakistan into the global digital financial ecosystem while addressing concerns related to compliance, security, and innovation.