Pakistan has established the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee and regulate the country's cryptocurrency industry.
The Federal Government of Pakistan has launched the Pakistan Virtual Assets Regulatory Authority (PVARA), a new agency responsible for overseeing the country's digital assets industry.
According to local English news media (Dawn) on Tuesday, PVARA will operate as an independent regulatory authority responsible for licensing, monitoring, and supervising virtual asset service providers. The agency will also ensure compliance with international standards, including alignment with the Financial Action Task Force (FATF) guidelines.
The report follows an announcement by the Pakistan Ministry of Finance in late May that supported the creation of this regulatory body. Pakistan's Federal Minister of Finance and Revenue, Muhammad Aurangzeb, stated that the country "must regulate not just to catch up, but to lead."
"We are creating a forward-looking framework that protects consumers, attracts global investment, and positions Pakistan at the forefront of financial innovation," Aurangzeb added.
Pakistan is pushing forward its plans despite opposition from the International Monetary Fund.
According to a statement from the country's Ministry of Finance quoted by (Dawn), the approval of PVARA was described as "a key turning point." This move is part of Pakistan's authorities' broader efforts to expand in the crypto and digital finance space.
The strategy faces hurdles. Last week, the International Monetary Fund (IMF) reportedly rejected Pakistan's proposal to provide subsidized electricity to energy-intensive industries, including Bitcoin (BTC) miners.
In May, reports indicated that Pakistan had reserved 2000 megawatts of surplus electricity for Bitcoin mining and AI centers.
These efforts are led by the Pakistan Crypto Committee and supported by the Ministry of Finance.
In early June, Pakistan's Minister of State for Crypto and Blockchain, Bilal Bin Saqib, met with Brandon Lutnick, Chairman and CEO of Cantor Fitzgerald, and New York City Mayor Eric Adams.
During the meeting with Lutnick, Saqib discussed "tokenization, Bitcoin mining, Pakistan's Web3 future, and avenues for collaboration." Similarly, in the meeting with Adams, the two explored cooperation between New York City and the Pakistan Crypto Committee.
Similarly, in early June, Saqib met with Robert "Bo" Hines, Executive Director of the U.S. President Trump's Digital Assets Council, during his visit to the White House. Discussions were dominated by collaborative crypto initiatives, such as Pakistan's mining operations or Bitcoin reserves.