Pakistan Introduces Regulatory Framework for Crypto, Invites Global Exchanges

Pakistan has taken a significant step toward formalizing its cryptocurrency market with the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA). The new body, created under the Virtual Assets Ordinance 2025, aims to bring clarity to a sector that has long operated in a legal gray area. With an estimated 40 million crypto users and $300 billion in annual trading volume, Pakistan's market is poised for structured growth.

The regulatory framework addresses longstanding concerns around fraud, money laundering, and investor protection. "By creating clear rules, Pakistan signals to global investors that it is serious about digital assets," said a senior finance official. The MOVE is expected to attract compliant international exchanges, particularly those already licensed by major regulators like the US SEC, UK FCA, or Singapore’s MAS.

Licensing requirements emphasize anti-money laundering (AML) compliance, robust KYC protocols, and tailored business plans for the Pakistani market. PVARA's selective approach underscores its focus on transparency and consumer protection. The initiative also explores Shariah-compliant crypto solutions, balancing innovation with regulatory oversight.