President Asif Ali Zardari has approved the Virtual Assets Act, 2025, establishing the Pakistan Virtual Asset Regulatory Authority (PVARA). This new federal authority will license, regulate, and supervise all entities dealing in digital assets. The Federal Cabinet endorsed the creation of the authority earlier this week. This marks a major shift in how Pakistan plans to oversee its growing virtual asset market.
PVARA has been granted full powers to ensure transparency, legal compliance, and financial integrity. It will also work to prevent illegal activities involving digital assets. The law aligns with international standards, including those of the Financial Action Task Force (FATF). The authority’s board will include major government stakeholders such as the heads of the State Bank, SECP, FBR, and others.
Anyone or any company offering digital asset services in or from Pakistan must now get a license. A structured licensing system will soon be introduced. This will include rules for registration, operations, and reporting. Additionally, a regulatory sandbox will allow companies to test new technologies under close oversight.
To support innovation, the authority can issue no-action relief letters for controlled testing. A Shariah Advisory Committee will also be formed. It will ensure that Islamic finance rules are followed in all virtual asset services. Licensed firms offering Islamic products must follow the committee’s rulings.
Lastly, the law creates a special Virtual Assets Appellate Tribunal. It will hear appeals against the authority’s decisions. The tribunal will operate independently and include experts in law, finance, and technology. The move reflects Pakistan’s commitment to regulate digital finance while promoting innovation and investor protection.