Pakistan Unveils Virtual Asset Law Framework

The federal government of Pakistan has officially launched its virtual asset regulatory framework, marking a major step toward organizing and regulating the digital asset space including cryptocurrencies. A high-level meeting was held in Islamabad where key representatives from banks, exchange companies, and the jewellery sector were briefed on the newly approved Virtual Assets Act 2025. The law received formal approval from the Cabinet, Prime Minister Shehbaz Sharif, and President Asif Ali Zardari on July 9.

At the core of the legislation is the formation of the Pakistan Virtual Asset Regulatory Authority (PVARA). This new body will handle licensing, regulation, and monitoring of all virtual asset entities to ensure compliance with international standards, especially those outlined by the @Financial Action Task Force (FATF).

Banks and exchange companies will now be eligible to apply for licenses, allowing them to operate in the crypto and digital asset market under a secure and monitored environment.

State Bank of Pakistan (SBP) Governor Jameel Ahmed announced that legislation for a central bank digital currency (CBDC) is nearing finalization and a pilot launch is expected soon. This move supports Pakistan’s ongoing digital transformation strategy and follows the earlier creation of the Pakistan Crypto Council in February 2025.

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