Islamabad: Pakistan has taken a significant step towards regulating cryptocurrency by establishing the Pakistan Virtual Assets Regulatory Authority (PVARA) under the Pakistan Virtual Assets Ordinance 2025. The ordinance, promulgated by the President on July 8, 2025, aims to license, regulate, and supervise virtual assets and service providers in the country.
The ordinance, currently a temporary legislative measure valid for 120 days, is undergoing parliamentary scrutiny to become a permanent law. It was presented to the Senate and National Assembly in August and September, respectively. The Finance and Revenue Committees are reviewing it, with further readings and votes scheduled.
Pakistan’s shift in crypto policy marks a departure from its cautious stance in previous years. The State Bank of Pakistan (SBP) and other agencies had previously issued warnings and advisories against cryptocurrency due to concerns over money laundering and terror financing risks. However, recent developments, including the formation of the Pakistan Crypto Council and strategic appointments, indicate a more welcoming approach.
The ordinance comprises 12 parts and outlines the structure of the PVARA, which will be governed by an 11-member board. It will license virtual asset service providers across eight categories and establish frameworks for consumer safety and compliance. However, the ordinance explicitly states that virtual assets will not be considered legal tender in Pakistan.
Experts have raised concerns about the regulatory framework’s alignment with international standards and potential burdens on service providers. They suggest a more nuanced approach, including tiered regulations, clearer guidelines, and enhanced capacity building for the PVARA.
For those interested in engaging with the legislative process, the ordinance text and committee contact details are available on the National Assembly and Senate websites.