Pakistan pushes digital innovation with independent crypto authority
New crypto regulator PVARA to oversee digital finance in Pakistan
The federal government of Pakistan has officially launched the Pakistan Virtual Assets Regulatory Authority (PVARA), marking a major step toward the formal regulation of the country’s digital asset industry.
PVARA will serve as an independent regulator responsible for licensing, supervising, and monitoring virtual asset service providers (VASPs), reports Cointelegraph.
The authority is also expected to ensure adherence to global standards, including recommendations set by the Financial Action Task Force (FATF). Finance Minister Muhammad Aurangzeb emphasized the proactive nature of the initiative, stating that Pakistan “must regulate not just to catch up, but to lead.” The framework aims to balance consumer protection with innovation and investment attraction in the emerging crypto economy.
IMF objects to Pakistan’s digital energy strategy
Despite this progressive move, Pakistan’s broader digital transformation strategy has encountered resistance, particularly from the International Monetary Fund (IMF). The IMF recently opposed a proposal to allocate subsidized power to energy-intensive sectors, including Bitcoin mining. This came after the country designated 2,000 megawatts of surplus electricity for use in mining and AI development.
These plans, spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance, reflect an ambitious attempt to turn Pakistan into a regional hub for blockchain infrastructure. However, the IMF’s objection underscores the tension between economic modernization and fiscal discipline amid Pakistan’s ongoing negotiations for financial assistance.
Global engagement highlights Pakistan’s crypto ambitions
Pakistan is not limiting its crypto ambitions to domestic regulation. In June, Minister of State for Crypto and Blockchain Bilal Bin Saqib met with several influential figures in the global financial and political landscape. Discussions with Cantor Fitzgerald CEO Brandon Lutnick and New York City Mayor Eric Adams focused on tokenization, Web3 collaboration, and Bitcoin mining infrastructure. Saqib also visited the White House, where he met Robert “Bo” Hines, the executive director of President Donald Trump’s Council on Digital Assets, to explore cooperative projects such as Bitcoin reserves and mining initiatives. These international engagements signal Pakistan’s intention to integrate deeply into the global crypto economy while enhancing its regulatory and technological capacities at home.
Recently we wrote that six months after the full implementation of the European Union’s landmark crypto regulation, MiCA, 53 crypto-related entities have received authorization to operate legally across the EU’s 30-country bloc.
