In a landmark decision, the federal cabinet has approved the creation of the Pakistan Virtual Assets Regulatory Authority (PVARA), setting the stage for a structured legal framework to regulate digital assets. The new authority will function as an independent body responsible for licensing and supervising Virtual Asset Service Providers (VASPs), ensuring adherence to Financial Action Task Force (FATF) guidelines and international best practices. This move aims to bring transparency and security to Pakistan’s rapidly growing crypto market, which has largely operated in informal channels until now.
The approval follows the formation of the Pakistan Crypto Council (PCC) in March 2025, led by Finance Minister Muhammad Aurangzeb and Bilal Bin Saqib, SAPM on Blockchain & Crypto. The PCC has been instrumental in shaping policies to promote blockchain adoption while mitigating risks. In a major development, Pakistan announced its first Strategic Bitcoin Reserve at the Bitcoin 2025 Conference in Las Vegas, signaling long-term confidence in digital assets. Additionally, the government allocated 2,000 MW of surplus electricity to power Bitcoin mining and AI data centers, leveraging Pakistan’s energy potential for economic growth.
PVARA will play a pivotal role in standardizing crypto regulations, combating money laundering, and safeguarding investors. The authority will collaborate with key institutions, including the SECP, State Bank of Pakistan, and IT Ministry, to ensure a cohesive regulatory environment. With over 40 million crypto users and an estimated $300 billion in annual informal trading volume, Pakistan’s digital asset market holds immense potential. The youth-driven adoption—70% of the population is under 30—further strengthens the case for a regulated yet innovation-friendly ecosystem.
By integrating Bitcoin reserves, energy-efficient mining, and strict compliance measures, Pakistan aims to attract global blockchain investments and establish itself as a digital finance hub in South Asia. PVARA’s establishment marks a critical milestone in transitioning from an unregulated market to a secure, institutionalized crypto economy. As Pakistan embraces this technological shift, the focus remains on balancing innovation, security, and financial inclusion to drive sustainable growth in the digital age.