The federal cabinet has approved the creation of the Pakistan Virtual Assets Regulatory Authority (PVARA), marking a significant step toward regulating the country's rapidly expanding digital assets sector.
According to a statement from the Prime Minister’s Special Office on Blockchain and Crypto, PVARA will serve as an autonomous regulatory body tasked with developing a comprehensive legal and institutional framework for virtual assets in Pakistan. It will be responsible for licensing and supervising Virtual Asset Service Providers (VASPs), ensuring strict adherence to Financial Action Task Force (FATF) guidelines and international best practices.
The authority's functions will include licensing entities, monitoring compliance, setting technical standards, and aligning national policies with those of the FATF, IMF, and World Bank. Its broader mandate encompasses consumer protection, anti-money laundering enforcement, and cyber risk mitigation.
Officials noted that the establishment of PVARA is expected to enhance investor confidence, attract foreign investment, and drive innovation in blockchain technologies. The approval has been described as a “historic milestone” that reflects Pakistan’s vision to position itself as a leading digital asset hub in South Asia.
With over 40 million crypto users and an estimated $300 billion in informal annual crypto trading, Pakistan has emerged as a key player in the digital asset space. Despite previous regulatory ambiguity, the country’s youthful demographic—70% of the population is under 30—has embraced blockchain with enthusiasm. The government sees this momentum as a strategic opportunity to build a secure, inclusive, and forward-looking crypto economy, underpinned by its rapidly evolving digital infrastructure.