Pakistan Virtual Assets Act 2025: New Era of Crypto and Digital Finance Regulation
Pakistan Virtual Assets Act 2025 has officially been signed into law by President Asif Ali Zardari, following approvals from the Federal Cabinet and Prime Minister. This landmark legislation is set to transform the country’s digital finance and cryptocurrency landscape by introducing a robust regulatory framework.
Introducing PVARA: A New Federal Authority
The law establishes the Pakistan Virtual Asset Regulatory Authority (PVARA), an autonomous body with the power to license, regulate, and supervise virtual asset service providers across Pakistan. PVARA has been given a wide mandate to ensure transparency, compliance, financial integrity, and prevention of money laundering and other illicit activities.
This aligns Pakistan’s regulatory structure with global best practices and Financial Action Task Force (FATF) standards, marking a major step toward international credibility in the digital finance space.
Powerful Governing Board for Oversight
The PVARA board will comprise senior officials from key national institutions, including:
- Governor, State Bank of Pakistan
- Secretaries of Finance, Law & Justice, IT & Telecom
- Chairpersons of SECP, FBR, and Digital Pakistan Authority
In addition, the Federal Government will appoint two independent directors with expertise in law, finance, or virtual assets. The Authority will be led by a Chairperson with proven experience in regulatory or financial sectors.
Licensing Requirements for Virtual Asset Services
Under the Pakistan Virtual Assets Act 2025, any company or individual wishing to operate in the virtual asset sector—whether in or from Pakistan—must obtain a license from PVARA.
The licensing process will include:
- Formal incorporation
- Operational and technical capacity
- Compliance systems
- Regular reporting requirements
Sandbox for Innovation and No-Action Relief
To encourage innovation, the law introduces a regulatory sandbox—a controlled environment where emerging technologies can be tested under supervision. PVARA may also grant no-action relief letters to enable low-risk experimentation with novel business models, while maintaining regulatory safeguards.
Islamic Finance and Shariah Compliance
In a pioneering move, the Act mandates the creation of a Shariah Advisory Committee to ensure that virtual asset products are aligned with Islamic principles. Entities offering Islamic financial products must strictly adhere to this committee’s rulings, ensuring religious compliance in digital finance.
Dispute Resolution via Specialized Tribunal
For transparency and justice, the law provides for a Virtual Assets Appellate Tribunal to handle disputes. The Tribunal will be judicially independent, consisting of domain experts in law, finance, and technology.
Conclusion: Pakistan Embraces Regulated Digital Future
The Pakistan Virtual Assets Act 2025 is a game-changing step toward establishing a safe, inclusive, and future-ready digital financial ecosystem. With a clear regulatory roadmap, FATF compliance, and attention to both innovation and Islamic finance, Pakistan is positioning itself as a regional leader in responsible crypto regulation.
