Pakistani Government Announces the Creation of New Virtual Assets Regulatory Authority
Pakistan's Government Taking Massive Strides in its Goal to become South Asia’s Leading With the Creation of New Regulatory Authority Despite Recent Troubles
The Pakistani government today has formally established the Pakistan Virtual Assets Regulatory Authority (PVARA). This independent body will serve as the primary regulator for virtual asset service providers (VASPs), a major shift in the country’s approach to digital assets.
The announcement, approved by the federal cabinet on Monday, reflects Pakistan’s growing commitment to aligning its virtual asset ecosystem with Financial Action Task Force (FATF) guidelines and international standards.
“The cabinet’s approval is a critical inflexion point in this journey. Once legislated, the authority will be responsible for issuing licences, supervising VASPs, setting technical standards, and coordinating compliance with FATF, IMF, and World Bank guidelines,” a released statement by the Ministry of Finance reads.
PVARA will license, supervise, and monitor VASPs while setting technical standards for the industry, marking a shift from the country’s previous fragmented regulatory approach. Furthermore, the authority will coordinate compliance with regulatory expectations from the IMF, World Bank, and FATF in addition to bolstering anti-money laundering (AML) efforts, cyber risk mitigation, and consumer protection.
Building a Digital Assets Pakistani Economy
This initiative builds on Pakistan’s vision to become a regional leader in blockchain and virtual asset innovation. With over 40 million crypto users and an estimated annual trading volume of $300 billion, Pakistan stands as one of the most active and emerging markets for digital assets. Over 70% of the population is under the age of 30, making it a magnet for new, cutting-edge technologies.
The government has already laid the groundwork through the formation of the Pakistan Crypto Council (PCC) in March 2025. Since its launch, the PCC has worked to enable responsible growth in blockchain, tokenized assets, and digital currencies. It also recruited crypto market leaders, including former Binance CEO Changpeng Zhao, as strategic advisors to help streamline its regulatory progress.
IMF Pushback on Subsidized Electricity for Crypto Mining
Despite the ambitious plans, Pakistan faces numerous challenges. Last month, the International Monetary Fund (IMF) rejected a proposal to offer subsidized electricity tariffs for crypto mining. The IMF refused to approve the proposal, citing its legality and the added burden on Pakistan’s already struggling power sector.
However, the creation of PVARA is a bold step in Pakistan’s future and digital transformation. With the institutional backing and a youthful population, Pakistan is positioning itself as a contender in the South Asia digital assets space.
