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In a significant move to position Pakistan as a regional hub for digital assets, the federal government has introduced the Virtual Assets Act, 2025, setting the stage for comprehensive regulation of the country’s emerging crypto ecosystem.
At a recent high-level meeting in Islamabad, representatives from banks, exchange companies, and the jewellery sector were briefed on the new law.
According to media reports, the Pakistan Virtual Assets Regulatory Authority (PVARA) has been established under the Act to serve as an independent regulator.
It will ensure compliance with global standards, particularly those set by the Financial Action Task Force (FATF).
The PVARA will monitor, license, and regulate virtual asset service providers (VASPs).
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The law also permits banks and exchange companies to obtain licenses to operate within the virtual asset sector, formalizing the previously unregulated crypto activity in the country.
Meanwhile, the State Bank of Pakistan (SBP) is finalizing legislation to launch a central bank digital currency (CBDC), according to Governor Jameel Ahmed.
The initiative aligns with global trends in digital financial infrastructure.
Earlier, Pakistan Crypto Council (PCC) CEO Bilal Bin Saqib announced the country’s first Strategic Bitcoin Reserve during a keynote speech at Bitcoin Vegas 2025.
High-profile US attendees, including Vice President JD Vance and members of the Trump family, were present during the announcement.
To attract crypto-related investment, authorities reportedly approved the allocation of 2,000 megawatts (MW) of electricity for mining operations.
Miners were offered power at Rs 8 – 9 per unit, far below the national base rate of Rs 24 – 25 per unit, sparking concerns from the International Monetary Fund (IMF) over unequal electricity subsidies.
While the IMF’s concerns pose a potential hurdle, Pakistan’s efforts mark a major step toward embracing digital finance, enhancing regulatory oversight, and encouraging international investment in its tech ecosystem.
