Pakistan Funds PVARA to Regulate Cryptocurrency

In a bold move toward regulating digital assets, Pakistan’s Economic Coordination Committee (ECC) has approved a grant of Rs 800 million for the newly formed Pakistan Virtual Assets Regulatory Authority (PVARA), while simultaneously greenlighting frameworks for used car imports under separate policy changes. The funding bolsters Pakistan’s effort to bring the national crypto‐ecosystem under formal oversight, while the import decision reflects the government’s balancing of broader economic needs.

Earlier in 2025, Pakistan passed the Virtual Assets Ordinance, 2025, establishing PVARA as the regulatory body to license, supervise, and regulate virtual asset service providers (VASPs) within the country. The Pakistan Crypto Council (PCC), launched in March 2025, has also played a central role in drafting policy, promoting blockchain initiatives, and positioning Pakistan as a credible player in the global crypto space. Prior to these reforms, the crypto sector in Pakistan operated in a legal grey zone, lacking clear regulation and exposing users to risks of fraud, money laundering, and regulatory uncertainty.

• The ECC’s approval of Rs 800 million for PVARA is intended to provide immediate funding for staffing, infrastructure, compliance systems, and operational readiness.
• Parallel to this, PVARA has issued an invitation to global crypto firms (especially those already licensed by regulators like the US SEC, UK FCA, or Singapore’s MAS) to apply for licenses to operate in Pakistan under strict compliance and security standards.
• Licensing applicants must submit business plans, technology setups, security protocols, compliance track records, and Pakistan-specific operations models.
• PVARA’s regulatory framework includes provisions such as regulatory sandboxes and a Shariah advisory committee to align virtual asset offerings with Islamic finance principles.
• The ECC’s other decision about used vehicle imports is separate but mentioned in the same session; its inclusion in the meeting underlines the government’s parallel focus on economic liberalization and regulatory reform.

The Rs 800 million allocation marks more than just a budget item it signals Pakistan’s commitment to bringing its crypto environment into the light of regulatory legitimacy. With global exchanges invited to enter the market and a regulatory authority empowered, the infrastructure is being laid for formal growth, investor protection, and alignment with international standards.
“This EoI is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan,” said Bilal bin Saqib, PVARA chair.

To what extent will the Shariah advisory framework restrict or guide particular crypto products?

As Pakistan positions itself in the digital assets era, this move may define whether the country becomes a regional hub for regulated crypto or remains hampered by legacy uncertainty and institutional challenges.