Pakistan moves to formalise digital assets sector as 40 million users operate informally

Pakistan is advancing plans to establish a formal regulatory framework for digital assets as blockchain adoption expands rapidly across the country, officials said on Saturday.

The development was announced by Minister of State and Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA) Bilal Bin Saqib while addressing the Leadership Summit on Blockchain and Digital Assets at the Lahore University of Management Sciences (LUMS).

Officials said around 40 million Pakistanis are currently involved in digital asset activity, largely through informal and unregulated platforms. The government’s stated objective is to transition this user base into a structured financial system while ensuring consumer protection and enabling innovation.

The proposed framework is expected to introduce regulatory sandbox environments to test emerging technologies, with asset-backed tokenisation identified as an initial priority area.

Policy discussions also focused on the broader financial implications of digital asset regulation. Pakistan receives approximately USD 38 billion in annual remittances, and officials said blockchain-based systems could improve efficiency in cross-border transactions.

The minister noted that clearer regulatory guidelines would also support Pakistan’s expanding freelance and digital services economy by improving access to global markets and digital platforms.

The initiative forms part of broader efforts to modernise financial infrastructure while bringing fast-growing digital asset activity under a formal regulatory structure.