Pakistan Greenlights Crypto Revolution: Banks & Exchanges Secure Formal Licenses
Pakistan crypto regulations
In a landmark shift positioning Pakistan as a digital asset hub, the federal government has enacted the Virtual Assets Act, 2025. This comprehensive law establishes a formal regulatory framework for the nation’s burgeoning crypto ecosystem, moving decisively beyond previous unregulated activity.
Key stakeholders, including banks, currency exchange companies, and jewellery sector representatives, were recently briefed on the new regulations during a high-level Islamabad meeting.
Central to the Act is the creation of the Pakistan Virtual Assets Regulatory Authority (PVARA). This independent body will serve as the primary crypto regulator, tasked with:
- Licensing and Regulating: Overseeing Virtual Asset Service Providers (VASPs).
- Formalizing Operations: Granting official crypto licenses to eligible banks and exchange companies, enabling them to operate legally within the sector.
- Ensuring Compliance: Upholding international standards, particularly those mandated by the Financial Action Task Force (FATF), to combat illicit activities.
CBDC Development Underway
Complementing this regulatory push, the State Bank of Pakistan (SBP) is finalizing legislation for its own Central Bank Digital Currency (CBDC). Governor Jameel Ahmed confirmed the initiative, aligning Pakistan with the global trend towards digital financial infrastructure.
Strategic Bitcoin Reserve & Mining Incentives
Adding to the momentum, Pakistan Crypto Council (PCC) CEO Bilal Bin Saqib unveiled plans for the nation’s first Strategic Bitcoin Reserve at Bitcoin Vegas 2025. The announcement, witnessed by prominent US figures including Vice President JD Vance and members of the Trump family, signals ambitious state-level crypto investment.
To attract further crypto-related investment, particularly in mining, authorities have reportedly approved allocating 2,000 megawatts (MW) of electricity at a significantly subsidized rate of Rs 8-9 per unit. This contrasts sharply with the national base rate of Rs 24-25 per unit.
IMF Concerns & The Path Forward
While these developments mark a major leap towards embracing digital finance and attracting international crypto investment, the substantial electricity subsidy for miners has drawn scrutiny. The International Monetary Fund (IMF) has expressed concerns regarding potential market distortions and inequality.
Despite this potential hurdle, Pakistan’s establishment of PVARA, the introduction of the Virtual Assets Act, 2025, plans for a CBDC, and the creation of a Strategic Bitcoin Reserve collectively represent a transformative commitment to becoming a regulated digital asset hub and fostering growth within its tech ecosystem.
