How Pakistan Is Moving Toward Regulating Digital Assets
Pakistan is transitioning from a predominantly informal cryptocurrency environment toward a structured and legally regulated digital asset ecosystem, aligning with international digital finance trends and investor protection standards. This shift reflects a broader strategy to integrate blockchain technology, attract investment, and safeguard consumers while mitigating illicit financial risks.
Formation of the Pakistan Crypto Council (PCC)
In March 2025, the Government of Pakistan established the Pakistan Crypto Council to steer the country’s digital asset policy development and regulatory strategy. Chaired by Finance Minister Muhammad Aurangzeb, the PCC brings together key policymakers and industry stakeholders to craft comprehensive frameworks for blockchain and cryptocurrency adoption.
Source: Radio Pakistan reporting on PCC launch Pakistan Broadcasting Corporation
The PCC is tasked with developing regulatory policies, fostering innovation, advising on investor protections, and positioning Pakistan as a progressive digital asset hub.
Source: Pakistan Crypto Council background Wikipedia
Establishment of a Regulatory Authority
In mid-2025, the federal cabinet approved the creation of the Pakistan Virtual Assets Regulatory Authority (PVARA), an autonomous body responsible for licensing and supervising virtual asset service providers (VASPs) within Pakistan. PVARA’s mandate is to align domestic regulation with Financial Action Task Force (FATF) standards and global best practices and to enforce compliance in areas such as AML/KYC and consumer safeguarding.
Source: Dawn News Urdu on regulatory authority Dawn News
This authority will provide legal clarity to currently unregulated markets, including exchanges, wallets, stablecoin issuers, and DeFi platforms.
Draft Framework and Legislative Initiatives
Government ministries and regulators have been actively working on a comprehensive draft digital assets regulatory framework covering governance, licensing criteria, and investor protection measures. Stakeholders such as the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP), and the Ministry of Law and Justice have participated in consultations to ensure the framework reflects international standards.
Source: Profit by Pakistan Today on draft framework Profit
Digital Currency and Pilot Projects
The State Bank of Pakistan has indicated plans to explore a Central Bank Digital Currency (CBDC) and pilot digital currency initiatives, which would further formalize digital financial infrastructure and digital payment ecosystems.
Source: Reuters on digital currency pilot Reuters
Governmental Policy Momentum
Federal decision-making has also included high-level council meetings to refine the legal framework for digital currencies, crypto regulations, and investor safeguards—reflecting sustained policy focus across economic, financial, and technological domains.
Source: AAJ TV on Crypto Council meeting AAJ News
Private Sector Partnerships and Global Integration
Recent collaborations between Pakistan’s Ministry of Finance and global blockchain firms, including a memorandum of understanding (MoU) with Binance to support blockchain infrastructure and regulatory preparedness, indicate Pakistan’s commitment to international crypto integration once legal frameworks are finalized.
Source: Jang News on MoU with Binance Jang
Market Context and Economic Considerations
Pakistan, with one of the highest global levels of crypto adoption by retail users, is responding to both domestic demand and international competition by formalizing its regulatory regime. Efforts to incorporate digital asset licensing, investor protection, AML compliance, and cross-border interoperability demonstrate a comprehensive approach to balancing innovation with risk mitigation.
The information provided in this article is for general informational purposes only and does not constitute legal or financial advice.
Author & Crypto Consultant
Shahid Jamal Tubrazy (Crypto & Fintech Law Consultant)
Shahid Jamal Tubrazy, a certified top expert in Crypto Law from Duke University, is a leading authority in the cryptocurrency and blockchain space. As a seasoned Fintech lawyer, he offers a full spectrum of services, including licensing, legal guidance for ICOs, STOs, DeFi, and DAOs, as well as specialized expertise in crypto mediation, negotiation, and mergers and acquisitions. With a proven track record and published works on Blockchain Regulation and Cryptocurrency Laws, Shahid provides unparalleled insights into the complexities of the fintech world, ensuring compliance and strategic success. 🌐💼 #CryptoLaw #Fintech #Blockchain #LicenseServices #CryptoMediator #MergersAndAcquisitions #CryptoCompliance #FrozenAssetsrecovery.
EMAIL: shahidtubrazy@gmail.com
Website: https://cyberlawconsult.wixsite.com/cryptolawyer
Facebook: https://www.facebook.com/fintechcryptolawyer
