Pakistan officially established the Pakistan Virtual Assets Regulatory Authority (PVARA) to manage and develop the country's 300 billion USD cryptocurrency market.
This new agency aims to establish a transparent legal framework, in line with international standards, to promote digital financial innovation and manage risks in the rapidly growing digital asset sector.
MAIN CONTENT
Establishing PVARA to supervise and license Virtual Asset Service Providers (VASPs).
Pakistan has over 40 million crypto users with an annual transaction volume reaching 300 billion USD.
The government supports Bitcoin mining by allocating 2,000 MW of electricity and planning to establish a strategic Bitcoin reserve.
What digital asset regulatory authority has Pakistan established, and what is its role?
The establishment of PVARA is a significant step towards managing the booming cryptocurrency market in Pakistan, with the mission of licensing, supervising, and ensuring compliance with anti-money laundering laws.
On June 4, 2024, the Pakistan Ministry of Finance confirmed that PVARA will operate independently under a tight supervision mechanism for Virtual Asset Service Providers (VASPs), as well as protect cybersecurity and crypto users. This move brings Pakistan closer to a legal framework that meets international standards as recommended by the FATF.
The Pakistan government sees the establishment of a cryptocurrency regulatory agency as a crucial milestone in the development of the country's digital economy.
(Excerpt from the statement of the Pakistan Minister of Finance, June 2024)
What is the scale and potential of the cryptocurrency market in Pakistan?
Pakistan has over 40 million cryptocurrency users with an estimated transaction volume of 300 billion USD annually, making it a leading potential market in the region.
The CEO of the Pakistan Crypto Council, Bilal Bin Saqib, stated that this is one of the promising pioneering markets with a rapid development pace, while also highlighting the strong transformation of Bitcoin in Pakistan.
"Once misunderstood, now unstoppable. Bitcoin and Pakistan are rewriting the story."
(Bilal Bin Saqib, CEO Pakistan Crypto Council, 29/5/2024)
How does the Pakistan government support cryptocurrency and Bitcoin activities?
The government has identified a strategy to integrate cryptocurrency and blockchain into the national economic plan with a focus on energy infrastructure capacity.
Notably, 2,000 megawatts of surplus electricity have been allocated to support Bitcoin mining and AI data centers to maintain environmental sustainability. At the same time, Pakistan has also announced plans to establish a strategic Bitcoin reserve to enhance macroeconomic stability amid volatility.
The Ministry of Finance emphasized that this coordination helps Pakistan not only become a center for digital financial innovation in the region but also maintain environmentally friendly activities in high energy consumption sectors.
Comparison table of cryptocurrency management policies between Pakistan and regional countries
Criteria Pakistan India Singapore Regulatory body PVARA (established 2024) CBDT & RBI (no separate official agency yet) Monetary Authority of Singapore (MAS) Legal framework Under construction, in compliance with FATF Restrictive regulations, unclear Clear, transparent, supportive of innovation Support for Bitcoin mining Allocated 2,000 MW surplus electricity Restrictions due to energy policy Encouraged mining with green standards Strategic Bitcoin reserve Planned Not announced None
Frequently Asked Questions
What role does PVARA play in cryptocurrency management in Pakistan? PVARA is responsible for licensing, supervising, and ensuring compliance with anti-money laundering laws for Virtual Asset Service Providers in Pakistan. How is Pakistan developing its cryptocurrency market? Pakistan has over 40 million cryptocurrency users and an annual transaction volume of up to 300 billion USD, making it a leading market in South Asia. How does the government support Bitcoin mining? Pakistan allocates 2,000 MW of surplus electricity for Bitcoin mining activities and AI data centers to promote sustainable development. Does Pakistan have plans for Bitcoin reserves? The government is establishing the first strategic Bitcoin reserve in the region to strengthen macroeconomic stability amid market volatility. Is Pakistan's legal framework in line with international standards? The PVARA regulatory agency is being built to align with international standards such as FATF, IMF, and the World Bank.
Source: https://tintucbitcoin.com/pvara-co-quan-quan-ly-tien-so-pakistan/
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