Pakistan may be inching closer to lifting its six-year ban on cryptocurrencies after its newly formed Virtual Assets Regulatory Authority (PVARA) convened its first board meeting in Islamabad on Tuesday. The meeting signals a potential shift in the country’s stance on digital assets as the government moves to regulate — rather than prohibit — the sector.
A New Watchdog for Virtual Assets
PVARA, led by Chairman Bilal bin Saqib, was established to oversee blockchain-based assets, cryptocurrencies, and related technologies. During the inaugural meeting, the board discussed rolling back the State Bank of Pakistan’s 2018 directive (BPRD Circular No. 03), which barred banks and financial institutions from handling virtual currencies.
Saqib said the authority’s priority is to “safeguard financial integrity while fostering innovation,” adding that PVARA aims to restore trust among local investors and establish Pakistan as a credible player in the global digital economy.
Building Infrastructure and Oversight
The board approved the creation of a dedicated complaint portal, developed with the National Cyber Crime Investigation Agency (NCCIA), to address scams, fraud, and disputes in the virtual asset space. The authority also reviewed proposals for independent directors with crypto expertise, a licensing regime for exchanges and custodians, and alignment with global Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) standards.
To fast-track progress, PVARA will hold bi-monthly meetings over the next six months and has formed committees to draft regulations, study taxation models, and promote international collaboration.
Political Backing and Industry Input
Finance Minister Muhammad Aurangzeb, who attended the session as a special invitee, called PVARA’s launch a “milestone in Pakistan’s economic evolution,” crediting the Pakistan Crypto Council (PCC) for extensive groundwork and consultations with industry stakeholders.
The minister emphasized that while Pakistan is open to embracing digital assets, the framework will focus on preventing financial crimes and safeguarding investors.
What This Means for Crypto in Pakistan
If the State Bank’s ban is officially reversed, Pakistan could open the door for licensed exchanges and banks to operate legally in the sector — a significant move in a country where crypto adoption has surged informally despite regulatory uncertainty.
With PVARA now operational and backed by high-level government support, Pakistan appears to be positioning itself for a more structured and regulated crypto market, potentially unlocking opportunities for investment and innovation in the region.
