ISLAMABAD: The federal cabinet has approved the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) — a major step toward regulating the country’s fast-growing digital assets sector.
According to a statement from the Prime Minister’s Special Office on Blockchain and Crypto, the new authority aims to build a robust legal and institutional framework for virtual assets in Pakistan. It will operate as an autonomous regulator, licensing and monitoring Virtual Asset Service Providers (VASPs) while ensuring full alignment with FATF guidelines and global best practices.
The authority will also oversee licensing, monitoring of entities, setting technical standards, and ensuring compliance with FATF, IMF, and World Bank policies. Its mandate includes public protection, anti-money laundering safeguards, and cyber threat prevention.
Officials said the regulatory body would boost trust, attract foreign investment, and encourage innovation in blockchain, laying the foundation for a safe and future-ready digital economy. The statement called this approval a “historic milestone” and a sign of Pakistan’s ambition to become a digital asset hub in South Asia.
Pakistan has emerged as a growing market with over 40 million crypto users and $300 billion in informal annual crypto trading. Despite earlier regulatory uncertainty, the country’s young population — 70% of whom are under 30 — has rapidly embraced blockchain technology. The government sees this as a unique opportunity to establish a strong crypto economy, backed by a rapidly expanding digital infrastructure.