Pakistan Launches PVARA to Regulate Digital Assets Market

Pakistan has made a significant move towards regulating its rapidly expanding digital assets market with the official launch of the Pakistan Virtual Assets Regulatory Authority (PVARA). This new regulatory body is tasked with licensing, regulating, and overseeing the virtual assets industry within the country. The establishment of PVARA marks a pivotal moment in Pakistan's efforts to align its digital economy with international standards set by the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank.

The Ministry of Finance highlighted that the cabinet's approval of PVARA is a major milestone. The new authority will be responsible for issuing licenses to virtual asset service providers (VASPs), setting technical regulations, and ensuring that these companies protect users and prevent illegal financial activities. By doing so, PVARA aims to mitigate risks such as money laundering and cyber threats, which are significant concerns in the unregulated crypto market.

Pakistan's strategic plan to become a digital assets hub in South Asia is multifaceted. The government aims to leverage its surplus energy and national reserves to attract foreign investment and create more employment opportunities. The Policy Coordination Council (PCC), chaired by Finance Minister Muhammad Aurangzeb and headed daily by Bilal Bin Saqib, Special Assistant to the Prime Minister on Blockchain and Crypto, has been instrumental in this endeavor. The PCC includes high-ranking officials such as the Chairman of the Securities and Exchange Commission of Pakistan (SECP), the State Bank Governor, and federal secretaries of Law and IT, indicating a collaborative effort across various government departments.

In addition to PVARA, Pakistan has taken other bold steps to solidify its position in the digital economy. The country announced its first Strategic Bitcoin Reserve at the Bitcoin 2025 Conference in Las Vegas, which will be used to stabilize the economy during global shocks. Furthermore, Pakistan plans to utilize 2,000 megawatts of excess energy for Bitcoin mining and AI data centers, converting idle energy into profitable ventures that will further boost the economy.

Pakistan's young population, with over 70% of its citizens under the age of 30, has quickly adopted new digital technologies. This demographic shift has contributed to a significant increase in crypto users, estimated to be over 40 million, and an annual crypto trading volume of approximately three hundred billion US dollars. However, the lack of clear regulations has made the market risky. With the establishment of PVARA, Pakistan aims to protect users and attract large investors, fostering a safer and more reliable digital economy.