In a major move toward regulating the digital economy, the federal cabinet on Monday approved the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) to regulate the country’s virtual assets sector, including cryptocurrencies and blockchain-based services.
The Authority’s mandate includes the licensing and supervising of virtual asset service providers, ensuring they comply with international standards such as those set by the Financial Action Task Force. Additionally, it would focus on protecting users, preventing money laundering, and managing cyber risks. It would also coordinate with global financial institutions and set and ensure technical and compliance standards.
According to officials of the Pakistan Crypto Council, the new regulatory framework aims to help build trust, attract foreign investment, and unlock the full potential of blockchain innovation in Pakistan.
The incumbent government has extended significant support to the crypto sector, establishing the Pakistan Crypto Council (PCC) in March 2025. Led by Finance Minister Muhammad Aurangzeb and Bilal bin Saqib, Special Assistant to the Prime Minister on Blockchain and Crypto, the PCC includes top government officials and international blockchain experts, including former Binance CEO Changpeng Zhao.
Addressing the Bitcoin 2025 Conference in Las Vegas, Saqib announced the creation of Pakistan’s first Strategic Bitcoin Reserve, aimed at strengthening the country’s financial resilience. The government has also revealed plans to allocate 2,000MW of surplus electricity for Bitcoin mining and A.I. data centers to drive economic growth.
With over 40 million crypto users and a youthful, tech-savvy population, Pakistan is striving to position itself as a regional hub for digital assets. The country’s crypto market is estimated to have an informal trading volume of $300 billion annually.