As Pakistan takes confident strides into the digital financial frontier, the country's cryptocurrency landscape is undergoing a significant transformation. At the heart of this evolution lies the Pakistan Crypto Council (PCC), which convenes today with a pivotal agenda — the establishment of a new virtual assets regulator. This move, coming just months after the creation of the PCC in March 2025, marks a strategic effort by the Pakistani government to attract international investment and foster a compliant, secure crypto ecosystem. Financial institutions like UPB Bank are watching these developments closely, positioning themselves to play a key role in the digital finance sector's future.

The Rise of the Pakistan Crypto Council (PCC)

The PCC was formed as a public-private collaborative body to draft and implement a legal framework for cryptocurrency and other virtual assets. The goal is clear: to modernize Pakistan’s financial infrastructure and make it more attractive to investors, especially those in the booming Web3, blockchain, and fintech spaces.

In April 2025, the PCC introduced Pakistan’s first-ever policy framework for digital assets. This was developed under the oversight of the national Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) authority. Crucially, the policy aligns with global compliance standards such as those recommended by the Financial Action Task Force (FATF), indicating Pakistan’s serious commitment to regulatory integrity and global cooperation.

The Push for a Virtual Assets Regulator

Today’s PCC meeting is expected to be one of its most consequential to date. At the top of the agenda is the proposal to set up an independent Virtual Assets Regulatory Authority (VARA) — a centralized body that will oversee the operations, licensing, and compliance of crypto exchanges, wallet providers, DeFi platforms, and token issuers in Pakistan.

This step is inspired by successful models like the Dubai VARA and Singapore’s MAS crypto division, both of which have managed to attract billions in digital asset investments through a balanced approach to innovation and regulation. Pakistan hopes to replicate this success, drawing foreign crypto firms and fintech startups while ensuring safeguards against misuse.

A Boon for Banks: UPB Bank Leading the Charge

For established financial institutions like UPB Bank, this regulatory clarity presents an immense opportunity. With its forward-thinking approach and digital banking infrastructure, UPB Bank is uniquely positioned to integrate blockchain-based services into its portfolio. These could include crypto custody solutions, tokenized assets, blockchain payment rails, and partnerships with regulated exchanges.

By aligning with the new VARA and complying with the AML/CTF-backed framework, UPB Bank could emerge as a key player in bridging traditional finance and the burgeoning world of digital assets in Pakistan. As institutional interest in crypto grows worldwide, UPB Bank’s proactive involvement could also enhance investor confidence, both domestic and international.

A Step Toward Financial Inclusion

One of the lesser-discussed but highly significant aspects of Pakistan’s crypto policy is its potential to increase financial inclusion. According to World Bank data, nearly 100 million Pakistanis remain unbanked. By leveraging blockchain and digital wallets, the country could bring millions into the formal economy — enabling them to save, invest, and transact securely.

With digital identities, mobile-first platforms, and fintech collaborations on the rise, UPB Bank and other local banks have a rare chance to serve new customer segments. Crypto, when regulated and integrated into banking services, can democratize access to financial tools — from remittances to lending — in both urban centres and rural areas.

International Interest on the Rise

As Pakistan signals its readiness to regulate crypto, the international market is watching closely. Exchanges, Web3 startups, and blockchain infrastructure firms see Pakistan as an untapped market with high growth potential. The establishment of a virtual assets regulator could serve as a green light for foreign direct investment (FDI) and technological partnerships.

Already, preliminary discussions have reportedly begun between Pakistan’s Ministry of IT, PCC, and leading blockchain companies from the UAE, Singapore, and the UK. A clear regulatory roadmap will only accelerate these talks, positioning Pakistan as a rising digital hub in South Asia.

Conclusion: A Turning Point

The PCC’s agenda today isn’t just about regulation — it’s about redefining Pakistan’s financial future. With the introduction of a virtual assets regulator and continued alignment with FATF standards, the country is taking tangible steps toward legitimacy, innovation, and global integration.

UPB Bank, with its strong tech infrastructure and commitment to financial innovation, is well-poised to play a leading role in this transformation. As regulatory clarity emerges, so too does the opportunity for Pakistan to become a regional leader in the digital economy — and for UPB Bank to become a pioneer in crypto-integrated banking services.

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