The Government of Pakistan has officially approved the “Virtual Assets Act, 2025” after endorsements from the Federal Cabinet, the Prime Minister, and the President.
This landmark law establishes the Pakistan Virtual Asset Regulatory Authority (PVARA), an autonomous body tasked with licensing, supervising, and regulating all entities dealing with virtual assets. PVARA has been granted extensive authority to ensure transparency, financial integrity, and compliance with international standards, including those of the Financial Action Task Force (FATF).
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The PVARA board will include the Governor of the State Bank of Pakistan, Secretaries from the Ministries of Finance, Law, and IT, and the heads of SECP, FBR, and the Digital Pakistan Authority. Additionally, two independent experts in virtual assets, law, or technology will be appointed, along with a Chairperson selected for expertise in regulatory and financial affairs.
Under the Act, individuals or businesses intending to provide virtual asset services in or from Pakistan must acquire a license from PVARA. The Authority will introduce a structured licensing system with clear operational, compliance, and reporting requirements.
The legislation also includes provisions for a regulatory sandbox to support responsible innovation. This will allow startups and new technologies to operate under oversight. PVARA may also grant no-action letters to enable testing without regulatory consequences, where appropriate.
To align with Islamic financial principles, a Shariah Advisory Committee will guide the Authority on the compliance of virtual asset offerings. Entities offering Islamic financial services must follow this committee’s rulings.
The Act also establishes a Virtual Assets Appellate Tribunal to handle appeals independently. This Tribunal will comprise experts in law, finance, and technology to ensure fair dispute resolution.
With the Virtual Assets Act, Pakistan is taking a significant step toward fostering a secure and innovation-friendly digital finance ecosystem, ensuring growth and compliance in the virtual asset sector.
