- Pakistan launches PVARA to license and oversee digital asset service providers.
- New regulator aligns crypto market with FATF, IMF, World Bank standards.
- Young population, Bitcoin reserve, and surplus energy fuel the $300B crypto market.
Pakistan has taken a big step toward regulating its fast-growing digital assets market. The federal government has officially launched the Pakistan Virtual Assets Regulatory Authority (PVARA). The new body will regulate, license, and watch over the virtual assets industry in the country.
Pakistan Sets Up PVARA to Regulate Virtual Assets, Protect Users
Dawn, one of the leading English-language news sources, noted that the new power will serve as an independent regulator. It is its task to ensure that all virtual asset service providers (VASPs) are strict.
Notably, PVARA will also ensure that the digital asset market in Pakistan is aligned with international standards. This implies that it will not be independent of compliance with the rules of the Financial Action Task Force (FATF), the International Monetary Fund (IMF) and the World Bank.
The Ministry of Finance issued a statement claiming that this approval by the cabinet was a massive milestone. It stated that the new body would be licensing, regulating the technical rules, and overseeing the crypto firms. It will also ensure that the companies defend users and avoid illegal activities of money.
Moreover, PVARA will prevent money laundering and maintain cyber risks at a minimum. This is significant since criminals can utilize crypto in case it is not monitored properly. By establishing this new authority, Pakistan aims to ensure that the digital economy becomes safe and reliable.
The plan is one of the elements of the overall intention of Pakistan to become a hub of digital assets in South Asia. The government desires to receive excess energy and national reserves and develop trust with the help of strict rules. Through this, Pakistan would like to enjoy foreign investment and generate more employment.
Policy Coordination Council (PCC) has been a major contributor towards this journey. Finance Minister Muhammad Aurangzeb chairs the Council and Bilal Bin Saqib, Special Assistant to the Prime Minister on Blockchain and Crypto heads it daily.
Young Population to Drive Pakistan $300B Crypto Market
The Council has also brought big names on board. For example, former Binance CEO Changpeng Zhao (CZ) is currently a strategic advisor to Pakistan crypto plans. It indicates that the market of Pakistan is promising to global crypto leaders.
The PCC also has the highest authorities, such as the Chairman of the Securities and Exchange Commission of Pakistan (SECP), the State Bank Governor, and the federal secretaries of Law and IT. This top team implies that every department of the government is collaborating in this plan.
Other daring steps are being undertaken in addition to PVARA by Pakistan. Pakistan announced its first Strategic Bitcoin Reserve on May 28, 2025, at the Bitcoin 2025 Conference in Las Vegas. This emergency will be used to stabilize the economy when there is a shock on the global scale.
In addition, the government will exploit 2,000 megawatts of excess energy in mining Bitcoin and AI data centers. This concept will convert idling energy into some profits that will enhance the economy even more.
Pakistan is already ranked as one of the most agile nations in terms of crypto trading. The number of crypto users in Pakistan is more than 40 million. It is estimated that the volume of crypto trading in the country is about three hundred billion US dollars annually.
Young people in Pakistan have rapidly embraced new digital technologies because more than 70 percent of the population is below 30 years. However, the market has been risky without any clear rules. At this point, Pakistan would like to safeguard users and bring in large investors with PVARA.
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