Pakistan’s cabinet has approved the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA), marking a step towards formalising the country’s digital assets ecosystem, according to a news report.
This decision comes shortly after the formation of the Pakistan Crypto Council (PCC) in March 2025, aimed at regulating blockchain technology, digital currencies, and tokenised assets.
The PCC, led by Finance Minister Muhammad Aurangzeb and Special Assistant to the Prime Minister, Bilal Bin Saqib, has been at the forefront of promoting responsible digital finance innovation.
The council also includes high-ranking officials from the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan, and the Ministry of Law, underscoring a whole-of-government approach to regulation.
The new authority will serve as an independent regulator responsible for licensing, monitoring, and supervising virtual asset service providers (VASPs), ensuring alignment with the Financial Action Task Force (FATF) guidelines and international best practices.
Once operational, PVARA will be responsible for issuing licenses, setting technical standards for VASPs, and ensuring compliance with global regulations, including FATF, IMF, and World Bank guidelines.
The authority will also play a key role in protecting the public, preventing money laundering, and mitigating cyber risks in digital asset transactions.
With a growing base of over 40 million crypto users, primarily among Pakistan’s young population, the country is positioned to become a key player in the digital asset market.
The government’s commitment to developing the digital finance sector was further demonstrated in May 2025, when Bilal Bin Saqib announced the creation of Pakistan’s first Strategic Bitcoin Reserve at the Bitcoin 2025 Conference in Las Vegas. The reserve is designed to hold Bitcoin for national economic stability.
Additionally, Pakistan allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI data centres, tapping into the country’s underutilised energy resources for the growth of blockchain infrastructure.
The question to ask is:
Is this a new way to launder money for politicians and bureaucrats?
Imagine land transactions where current cash component is paid in bitcoin.
Imagine un traceable bitcoin as bribe payments.
Don’t limit your imagination