Pakistan has taken a historic step in formalizing its crypto landscape by establishing the Pakistan Virtual Assets Regulatory Authority (PVARA) as of July 2025. Created under the Virtual Assets Ordinance, 2025, PVARA becomes the country’s flagship institution mandated with overseeing, regulating, and licensing the burgeoning virtual assets sector. 

Operating under the Ministry of Finance, PVARA is an autonomous regulatory body led by Chairperson Muhammad Aurangzeb, with key representation from the State Bank of Pakistan, Securities and Exchange Commission (SECP), Federal Board of Revenue (FBR), and Digital Pakistan Authority. Designed to ensure integrity and transparency, PVARA aims to combat illicit behavior such as money laundering and terrorism financing while aligning with global standards like those of the Financial Action Task Force (FATF). 

• Licensing Authority: All crypto service providers operating within Pakistan must secure authorization from PVARA.

• Regulatory Oversight: Implements stringent regulatory oversight across exchanges, wallets, and other digital asset services.

• Sandbox and Innovation Mechanisms: Supports the regulated development of innovative crypto solutions via regulatory sandbox frameworks and no-action letters.

• Shariah Compliance: Features a unique Sharia Advisory Committee, ensuring crypto products align with Islamic finance principles.

The formation of PVARA follows closely behind the establishment of the Pakistan Crypto Council (PCC) in March 2025. Headed by Finance Minister Muhammad Aurangzeb as chairperson and led by CEO Bilal Bin Saqib, the PCC includes strategic advisory from Binance founder Changpeng Zhao. The council represents the government’s efforts to integrate blockchain with various national sectors—from digital finance to energy innovation. 

Earlier this year, Pakistan also rolled out a government-led Bitcoin reserve initiative and allocated 2,000 MW of electricity for mining and AI infrastructure—twin moves signaling an overarching strategy to become a competitive player in the global crypto economy.