President of Pakistan Asif Ali Zardari has approved the Virtual Assets Ordinance, 2025, to create an independent regulatory authority for virtual assets and cryptocurrencies, Dawn reported.Â
The ordinance establishes the Pakistan Virtual Asset Regulatory Authority (PVARA), which will be responsible for licensing, regulating, and supervising virtual asset service providers. The PVARA will ensure compliance with international standards, including those of the Financial Action Task Force (FATF), and combat illicit activities in the sector.
On Tuesday, the federal cabinet approved the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA), marking a step towards formalising the country’s digital assets ecosystem.
However, confusion arose when an official statement referred to it as the ‘Virtual Assets Act, 2025,’ sparking concerns about the lack of passage through the National Assembly or Senate.
The confusion was later clarified, with authorities confirming that the regulation was an ordinance, not an act of parliament.Â
Issued under Article 89 of the Constitution, the ordinance was promulgated on July 8, 2025, and allows the president to issue ordinances in urgent matters when both houses are not in session. Such ordinances are valid for 120 days.
The PVARA’s board will consist of key government stakeholders, including the governor of the State Bank of Pakistan, secretaries of finance, law, and IT, and heads of various government bodies like the Securities and Exchange Commission of Pakistan (SECP) and the Federal Board of Revenue (FBR). Additionally, two independent directors with expertise in virtual assets, law, finance, or technology will be appointed.
The ordinance also introduces a licensing regime for virtual asset service providers, requiring them to meet specific operational, compliance, and reporting standards. It includes a regulatory sandbox to encourage innovation while maintaining oversight. A Sharia Advisory Committee will also be formed to ensure compliance with Islamic finance principles for relevant products.
A Virtual Assets Appellate Tribunal will be established to hear appeals against PVARA’s regulatory decisions, ensuring judicial independence and specialized expertise in law, finance, and technology.
This development follows the launch of the Pakistan Crypto Council (PCC) in March 2025 and marks a significant step towards creating a secure and innovation-friendly digital financial ecosystem in Pakistan.
