Pakistan Launches PVARA: A Bold Move to Regulate Crypto & Digital Assets in 2025

Pakistan just dropped a regulatory bombshell—and crypto markets are paying attention.

The newly formed Pakistan Virtual Asset Regulatory Authority (PVARA) is set to rewrite the rules for digital assets in one of Asia’s most untapped markets. No more wild west—just structured growth.

Why it matters: With global crypto adoption surging, Pakistan’s move could unlock billions in institutional capital. Or, knowing regulators, add another layer of bureaucracy to ‘protect’ investors from their own profits.

Behind the scenes: PVARA’s framework hints at licensing for exchanges, AML protocols, and—inevitably—taxation strategies. Because what’s innovation without a government hand in the till?

The bottom line: Whether this accelerates Pakistan’s crypto economy or strangles it with red tape depends entirely on execution. Place your bets.

Pakistan allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI data centers while announcing its first Strategic Bitcoin Reserve at the Bitcoin 2025 conference in Las Vegas.

Prime Minister Shehbaz Sharif has also elevated Bilal Bin Saqib to the position of Special Assistant for Blockchain and Crypto, granting him ministerial status to oversee the development of the sector.

The regulatory shift comes as Pakistan emerges as one of the most promising frontier markets for digital assets, with over 40 million crypto users and an estimated $300 billion in annual trading volume.

High-Profile Advisors Drive Pakistan’s Crypto Council Strategy

Changpeng Zhao’s appointment as strategic advisor in April marked a significant milestone in Pakistan’s crypto journey.

The former Binance CEO met with Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar during his visit to Islamabad, joining the heads of the State Bank of Pakistan and the Securities and Exchange Commission.

Moreover, Michael Saylor’s engagement in June brought additional institutional credibility to Pakistan’s bitcoin strategy.

The MicroStrategy executive chairman participated in landmark discussions with Finance Minister Aurangzeb and Crypto Minister Saqib, focusing on the role of Bitcoin in sovereign reserves and monetary policy.

Bitcoin pioneer Michael Saylor met with Finance Minister Muhammad Aurangzeb & Minister of State for Crypto Bilal Bin Saqib to discuss using #Bitcoin for national reserves & digital transformation.
Saylor praised Pakistan’s bold vision:
“Emerging markets like Pakistan have a… pic.twitter.com/wMrKWrX9Wn

Additionally, World Liberty Financial, linked to Donald Trump’s family, signed agreements with the Pakistan Crypto Council in April.

The collaboration explores asset tokenization, stablecoin development, and DeFi regulatory frameworks, with WLFI co-founders meeting directly with senior Pakistani officials.

Zachary Witkoff, son of TRUMP associate Steve Witkoff, formalized partnerships to embed blockchain technology into Pakistan’s financial systems.

The Pakistan Crypto Council consists of key institutional stakeholders, including the Securities and Exchange Commission chairman, the State Bank governor, and federal secretaries from the Law and Information Technology divisions, ensuring a whole-of-government approach to digital asset regulation.

IMF Resistance Challenges Power Allocation Plans

Recently, the International Monetary Fund rejected Pakistan’s proposal to offer subsidized electricity tariffs for crypto mining operations, warning the plan could strain the power sector.

The Pakistan government is still engaged with international institutions to refine its proposal to offer subsidised electricity tariffs for crypto mining, after IMF rejected its proposal.#IMF #Pakistan #BitcoinMininghttps://t.co/DOIm2pNGV7

Secretary of Power Dr. Fakhray Alam Irfan confirmed that the IMF has expressed concerns about market distortions and the effects on resource distribution.

The Fund questioned the legality of cryptocurrency mining in Pakistan and the additional strain it would put on the already burdened power grid.

The IMF noted Pakistan failed to consult the agency ahead of the 2,000MW allocation announcement, seeking urgent clarification from the Finance Ministry.

Pakistan faces chronic energy shortages and inflationary pressures, with the IMF warning about potential knock-on effects on power tariffs.

Officials involved in negotiations expressed concerns about “further tough talks” as the economic team faces tough questions over the initiative.

Despite IMF resistance, Pakistan continues to pursue its crypto ambitions through diplomatic channels.

U.S. President Trump expressed keen interest in cryptocurrency during a WHITE House lunch with Pakistan Army Chief Field Marshal Asim Munir, discussing economic development and emerging technologies.

PVARA will oversee public protection mechanisms, anti-money laundering protocols, and cyber risk mitigation across all virtual asset transactions.

The authority will coordinate compliance with the guidelines of the FATF, IMF, and World Bank, while setting technical standards for the industry.