Hajra Naz
The Government of Pakistan has officially enacted the Virtual Assets Act, 2025. It was approved by the Federal Cabinet, the Prime Minister, and the President. The new law creates the Pakistan Virtual Asset Regulatory Authority (PVARA).
PVARA is an independent federal body. It will license, regulate, and oversee all entities dealing with virtual assets and related services.
A New Regulatory Framework for Virtual Assets
PVARA has been granted broad powers to ensure:
-
Transparency and compliance
-
Financial integrity
-
Prevention of money laundering and other illicit activity
The Authority’s mandate aligns with international standards, including those set by the Financial Action Task Force (FATF).
Governance and Oversight
The Authority’s Board will consist of senior officials from key government institutions, including:
-
Governor of the State Bank of Pakistan
-
Secretaries of Finance, Law and Justice, and Information Technology & Telecom
-
Chairpersons of the SECP, FBR, and the Digital Pakistan Authority
In addition, two independent directors with expertise in virtual assets, law, finance, or technology will be appointed by the Federal Government. The Chairperson of PVARA will be selected based on proven experience in finance, law, technology, or regulation.
Read More: Pakistan to Launch Digital Assets Authority to Regulate $25B Crypto Market
Licensing Requirements
Under the new law, all individuals or companies offering virtual asset services within or from Pakistan must obtain a license from the Authority.
A structured licensing regime will be introduced, outlining requirements for:
-
Incorporation and legal standing
-
Operational readiness
-
Internal compliance systems
-
Financial and regulatory reporting
Innovation and Sandbox Model
To support responsible innovation, the Act introduces a regulatory sandbox. This allows startups and tech firms to test new products and services. All testing will happen under regulatory supervision.
PVARA can also issue no-action relief letters in certain cases. These letters let companies experiment without fear of enforcement. At the same time, they ensure accountability is maintained.
Shariah Compliance
Recognizing the role of Islamic finance, the Act mandates the creation of a Shariah Advisory Committee. This body will guide the Authority on matters of Shariah compliance related to virtual assets.
Any licensed firm offering Islamic financial products will be required to follow the committee’s rulings.
Appeals and Dispute Resolution
The law also establishes a Virtual Assets Appellate Tribunal to review and hear appeals against PVARA’s regulatory decisions.
The Tribunal will operate with judicial independence and feature a specialized bench with experts in law, finance, and technology.
Read More: Why Crypto Leaders Are Worried About Their Personal Safety
A Step Toward a Secure, Inclusive Digital Economy
Pakistan has passed the Virtual Assets Act. This is a big step forward for the country. It shows Pakistan is ready to support digital finance. The law sets clear rules and protects consumers.
It also helps new technology grow. This is an important move toward a safe and inclusive financial system. The Act supports innovation while keeping public interest in mind.
