Pakistan Launches New Authority to Regulate Digital Assets
Pakistan has officially introduced the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee its crypto sector. This announcement was made on July 8, marking the country’s determined effort to establish itself as a leading digital finance hub in South Asia.
PVARA will be responsible for licensing and monitoring Virtual Asset Service Providers (VASPs) to comply with international standards set by organizations like FATF, IMF, and the World Bank. Supported by a robust informal crypto market and a youthful population, Pakistan is positioned for innovation, although it must address challenges posed by IMF assessments and changes in energy policies.
PVARA: Pakistan’s Bid To Dominate South Asia’s Crypto Scene
With the launch of PVARA on July 8, 2025, Pakistan is stepping into the global arena to regulate and benefit from cryptocurrency. The new authority aims to formalize the estimated $300 billion crypto economy in the country.
PVARA will license VASPs to enhance transparency in digital finance and facilitate the establishment of the Pakistan Crypto Council (PCC) alongside a proposed Strategic Bitcoin Reserve, all part of a broader regulatory framework for crypto innovations.
🚨 New Development in Pakistan! 🇵🇰
Pakistan has launched its Virtual Assets Regulatory Authority (PVARA) to oversee crypto, tokenization, & the digital economy. 📊
— Crypto News Hunters 🎯 (@CryptoNewsHntrs) July 9, 2025
PVARA will enforce anti-money laundering (AML) standards, implement technical guidelines, and manage cyber risk. It will collaborate with international bodies including the FATF, IMF, and World Bank. The Pakistani government, led by Finance Minister Muhammad Aurangzeb and Special Assistant Bilal Bin Saqib, is aiming for a “future-ready” sector.
Key Takeaway: PVARA represents a significant step in Pakistan’s digital asset journey, potentially attracting foreign investments and fostering technological growth, if it can navigate its ambitious plans alongside prudent policy measures.
Challenges Ahead: Energy Crises, Trust Building, and IMF Pushback
Despite these advancements, Pakistan’s crypto strategy faces considerable challenges, particularly from the IMF which has rejected proposals for subsidizing electricity for bitcoin mining. This illustrates the tension between technological innovation and fiscal discipline mandated by international stakeholders.
Furthermore, Pakistan is grappling with persistent energy shortages and inflation, complicating efforts to support crypto mining initiatives with governmental backing. The IMF’s disapproval emphasizes the critical balance between promoting crypto innovation and maintaining macroeconomic stability.
The political landscape has shifted drastically; while crypto was banned in 2023, the launch of PVARA indicates a strong political will, though executing these ambitious plans could present substantial regulatory challenges and risk international credibility.
Conclusion
PVARA’s success will hinge on effective governance, extensive global collaboration, and domestic stability. If managed appropriately, it could position Pakistan as a significant player in the South Asian digital asset sector.
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