Govt to License Banks, Exchange Firms for Crypto Operations
Pakistan is moving rapidly toward a regulated virtual assets ecosystem. Under the Virtual Assets Act, 2025, the newly‑formed Pakistan Virtual Assets Regulatory Authority (PVARA) will issue licenses to banks and exchange firms wishing to operate in crypto
Pakistan is moving rapidly toward a regulated virtual assets ecosystem. Under the Virtual Assets Act, 2025, the newly‑formed Pakistan Virtual Assets Regulatory Authority (PVARA) will issue licenses to banks and exchange firms wishing to operate in crypto. A high‑level meeting chaired by SBP Governor Jameel Ahmad, alongside PCC CEO Bilal Bin Saqib, confirmed that financial institutions will be authorised to engage in crypto asset services—including trading, custody, and payments—once compliance and risk frameworks are in place. The initiative marks a shift from a cautionary stance to structured adoption, aligning with global best practices in digital assets regulation.
-
Law Enacted: Virtual Assets Act, 2025, establishes PVARA to license and supervise crypto services.
-
Licensed Entities: Banks, exchange companies, gem & jewellery firms to obtain virtual asset service provider (VASP) licenses.
-
Regulator Setup: PVARA chaired by FBR chairperson with board including SBP Governor, SECP, Law & IT Secretaries.
-
Policy Shift: From SBP’s 2018 risk advisory to a proactive licensing regime.
-
CBDC Pilot: SBP is preparing a central bank digital currency pilot, complementing crypto regulations.
-
Stakeholder Engagement: Crypto Council brought together top regulators, exchange leaders, and fintech stakeholders.
-
Global Alignment: Pakistan envisions aligning with global crypto hubs by enabling regulated infrastructure.
SBP’s 2018 Advisory & Clarification
The SBP’s 2018 circular warned regulated entities against dealing in virtual assets—not because crypto was illegal, but due to a lack of legal protections. No formal declaration was made publicly criminalizing crypto.
In May 2025, SBP clarified that virtual assets remain outside existing frameworks—but were not illegal per se. It reaffirmed ongoing collaboration with the Finance Ministry and the PCC to finalize licensing guidelines. ([turn0search4]citeturn0search4turn0search9)
Establishment of Pakistan Crypto Council (PCC)
Launched in March 2025 under the Finance Ministry, PCC offers cross-institution coordination. Headed by Finance Minister Muhammad Aurangzeb with Bilal Bin Saqib as CEO, and Binance founder Changpeng Zhao as strategic advisor, PCC spearheads regulatory framework drafting.
Virtual Assets Act & PVARA
The Virtual Assets Act, 2025 (promulgated July 8, 2025), created PVARA, an autonomous authority empowered to license, regulate, and supervise virtual asset services in line with FATF standards, including licensing VASPs and issuing regulatory sandboxes.
Pakistan’s Crypto Ecosystem
With 15–20 million users and high freelancing-driven crypto usage, Pakistan ranks among the world’s top crypto adopters—despite a lack of formal regulation.
The private sector and government see crypto as a pathway to digital exports and innovation.
Global Alignment
South Asian regulators—China, India, Nigeria, and Gulf states—are moving toward regulated virtual assets frameworks and CBDC pilots. Pakistan’s approach mirrors global best practices.
National Innovation Strategy
PCCA’s strategic decisions—allocating 2,000 MW of electricity for bitcoin mining and AI data centres and launching a government-led Bitcoin reserve—signal a broader agenda to position Pakistan as a fintech and blockchain innovation hub.
As Pakistan transitions toward a regulated digital assets sector, the licensing of banks and exchange firms via PVARA marks a decisive shift from caution to structured integration. Backed by enabling legislation, a central bank digital currency pilot, and active industry engagement, Pakistan is building components of a modern virtual finance environment.
