Pakistan launches crypto regulatory body to oversee booming digital asset sector

Pakistan has taken a major step toward formalizing its cryptocurrency industry with the launch of the Pakistan crypto regulatory body, the Pakistan Virtual Assets Regulatory Authority (PVARA).

The new independent regulator will oversee licensing, monitoring, and supervision of virtual asset service providers while ensuring compliance with international anti-money laundering (AML) standards.

The move comes as part of Pakistan’s broader push to position itself as a hub for digital finance, despite recent pushback from the International Monetary Fund (IMF) on crypto-related energy subsidies.

Pakistan’s bold move into crypto regulation

The federal government formally approved PVARA in late May, with Finance Minister Muhammad Aurangzeb declaring that the Pakistan crypto regulatory body is designed not just to keep pace with global trends but to set them.

“We are creating a future-ready framework that protects consumers, invites global investment, and puts Pakistan at the forefront of financial innovation,” — Muhammad Aurangzeb, Pakistan’s Federal Minister for Finance and Revenue, told Dawn.

The authority will align its policies with guidelines from the Financial Action Task Force (FATF), a global watchdog for money laundering and terrorism financing. Analysts say the decision reflects growing recognition of crypto’s economic potential in a country struggling with inflation and currency instability.

IMF resistance casts shadow on crypto ambitions

While the Pakistan crypto regulatory body marks progress, the country’s broader digital asset strategy has faced hurdles. Last week, the IMF rejected a proposal to subsidize electricity for Bitcoin miners, citing concerns over market distortions.

“Targeted energy subsidies risk creating fiscal imbalances and set a dangerous precedent,” — IMF spokesperson, in comments to local media.

The rejection came just weeks after Pakistan earmarked 2,000 megawatts of surplus power for crypto mining and AI data centers, a plan championed by the Pakistan Crypto Council. The group’s CEO, Bilal Bin Saqib, has argued that leveraging idle energy could turn Pakistan into a mining hotspot, powered by the crypto regulatory body.

Pakistan crypto regulatory body’s Global partnerships signal long-term vision

Undeterred by IMF skepticism, Pakistani officials are actively seeking international collaborations. In early June, Minister of State for Crypto and Blockchain Bilal Bin Saqib met with Cantor Fitzgerald CEO Brandon Lutnick and New York City Mayor Eric Adams to discuss blockchain adoption.

“Tokenization, Bitcoin mining, and Web3 development are key to Pakistan’s economic future,” — Bilal Bin Saqib, Pakistan’s Minister of State for Crypto and Blockchain, stated after the meetings.

Saqib also held talks with Robert “Bo” Hines, a key figure in former U.S. President Donald Trump’s digital assets council, signaling Pakistan’s intent to align with global crypto leaders.