Pakistan Introduces Law to Regulate Virtual Assets and Plans Digital Currency Pilot

Pakistan has enacted its first law to regulate virtual assets, establishing a federal authority to oversee crypto-related businesses. The Virtual Assets Act, 2025 creates the Pakistan Virtual Asset Regulatory Authority (PVARA) to supervise the virtual asset economy and ensure compliance with global anti-money laundering standards. Pakistan joins nations like UAE, Singapore, India, and EU in adopting formal oversight of blockchain-based finance.

The State Bank of Pakistan is preparing to launch a pilot for a digital rupee, signaling a move towards digital modernization of the financial system. The new law grants PVARA comprehensive powers to ensure transparency, compliance, financial integrity, and prevent illicit activities in alignment with international standards.

The regulator will introduce a licensing regime for firms offering crypto-related services in Pakistan, with a focus on combating illicit finance and enforcing transparency. The governing board of PVARA will include top officials from Pakistan's economic and regulatory institutions, along with independent directors.

The law also mandates the creation of a Shariah Advisory Committee to advise on the religious permissibility of virtual asset products. A Virtual Assets Appellate Tribunal will handle disputes independently. The legislation allows for responsible innovation through a regulatory sandbox supervised by PVARA.

In addition, Pakistan has seen recent crypto-focused developments, including the launch of the Pakistan Crypto Council (PCC) to support blockchain and virtual asset adoption. The State Bank of Pakistan is preparing for a pilot project for a digital rupee, aiming to enhance the country's capacity in central bank digital currency.

According to the source: Arab News.