President Zardari OKs Crypto Law Regulating Digital Finance

Pakistan has taken a major step toward regulating its digital financial space with the formal approval of the “Virtual Assets Act, 2025.” The Act was endorsed by the Federal Cabinet, the Prime Minister, and finally signed off by the President.

Under this new law, an independent regulatory body called the Pakistan Virtual Asset Regulatory Authority (PVARA) has been established. It is responsible for licensing and supervising businesses working with virtual assets, while ensuring compliance with international standards such as those set by the FATF.

The Authority’s Board will include representatives from key state institutions, such as the State Bank of Pakistan (SBP) , the Ministry of Finance, SECP, Federal Board of Revenue (FBR), and others, along with two independent experts appointed by the government. The Chairperson will be selected based on relevant experience in finance, law, or technology.

Any person or company intending to offer virtual asset services in or from Pakistan must obtain a license from PVARA. A structured licensing regime will define requirements for incorporation, operations, and compliance. A regulatory sandbox will support innovation under oversight, and a Shariah Advisory Committee will guide Islamic finance compatibility. An appellate tribunal will also be established to independently review regulatory decisions.

This legislation reflects Pakistan’s commitment to building a secure and innovation-friendly digital financial ecosystem.