Pakistan Creates Digital Assets Regulator PVARA to Oversee Crypto Industry

Pakistan formally established the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee the country’s rapidly growing digital assets ecosystem, marking a significant shift in policy from its previous stance against cryptocurrencies.

According to a report from Dawn, the federal cabinet has approved the creation of PVARA as an independent regulator for licensing, monitoring, and supervising virtual asset service providers, in alignment with the Financial Action Task Force guidelines.

Notably, the regulatory framework emerged after Pakistan’s ambitious digital transformation agenda gained momentum throughout 2025.

Finance Minister Muhammad Aurangzeb chairs the Pakistan Crypto Council, which enlisted former Binance CEO Changpeng Zhao and MicroStrategy’s Michael Saylor as strategic advisors to shape the country’s regulatory outlook.

Pakistan allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI data centers while announcing its first Strategic Bitcoin Reserve at the Bitcoin 2025 conference in Las Vegas.

Prime Minister Shehbaz Sharif has also elevated Bilal Bin Saqib to the position of Special Assistant for Blockchain and Crypto, granting him ministerial status to oversee the development of the sector.

The regulatory shift comes as Pakistan emerges as one of the most promising frontier markets for digital assets, with over 40 million crypto users and an estimated $300 billion in annual trading volume.

High-Profile Advisors Drive Pakistan’s Crypto Council Strategy

Changpeng Zhao’s appointment as strategic advisor in April marked a significant milestone in Pakistan’s crypto journey.

The former Binance CEO met with Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar during his visit to Islamabad, joining the heads of the State Bank of Pakistan and the Securities and Exchange Commission.

Moreover, Michael Saylor’s engagement in June brought additional institutional credibility to Pakistan’s Bitcoin strategy.

The MicroStrategy executive chairman participated in landmark discussions with Finance Minister Aurangzeb and Crypto Minister Saqib, focusing on the role of Bitcoin in sovereign reserves and monetary policy.

Additionally, World Liberty Financial, linked to Donald Trump’s family, signed agreements with the Pakistan Crypto Council in April.

The collaboration explores asset tokenization, stablecoin development, and DeFi regulatory frameworks, with WLFI co-founders meeting directly with senior Pakistani officials.

Zachary Witkoff, son of Trump associate Steve Witkoff, formalized partnerships to embed blockchain technology into Pakistan’s financial systems.

The Pakistan Crypto Council consists of key institutional stakeholders, including the Securities and Exchange Commission chairman, the State Bank governor, and federal secretaries from the Law and Information Technology divisions, ensuring a whole-of-government approach to digital asset regulation.

IMF Resistance Challenges Power Allocation Plans

Recently, the International Monetary Fund rejected Pakistan’s proposal to offer subsidized electricity tariffs for crypto mining operations, warning the plan could strain the power sector.

Secretary of Power Dr. Fakhray Alam Irfan confirmed that the IMF has expressed concerns about market distortions and the effects on resource distribution.

The Fund questioned the legality of cryptocurrency mining in Pakistan and the additional strain it would put on the already burdened power grid.

The IMF noted Pakistan failed to consult the agency ahead of the 2,000MW allocation announcement, seeking urgent clarification from the Finance Ministry.

Pakistan faces chronic energy shortages and inflationary pressures, with the IMF warning about potential knock-on effects on power tariffs.

Officials involved in negotiations expressed concerns about “further tough talks” as the economic team faces tough questions over the initiative.

Despite IMF resistance, Pakistan continues to pursue its crypto ambitions through diplomatic channels.

U.S. President Trump expressed keen interest in cryptocurrency during a White House lunch with Pakistan Army Chief Field Marshal Asim Munir, discussing economic development and emerging technologies.

PVARA will oversee public protection mechanisms, anti-money laundering protocols, and cyber risk mitigation across all virtual asset transactions.

The authority will coordinate compliance with the guidelines of the FATF, IMF, and World Bank, while setting technical standards for the industry.

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