In a historic move, the federal cabinet of Pakistan has approved the establishment of the Pakistan Virtual Assets Regulatory Authority (VARA), a key step towards creating a secure and well-regulated digital economy.
This landmark decision aims to build a comprehensive legal and institutional framework for the country’s rapidly growing digital asset ecosystem in Pakistan.
According to an official statement from the office of the Prime Minister’s Special Assistant on Blockchain and Cryptocurrency, the new authority will serve as an independent regulator. Its core responsibilities will include licensing, monitoring, and supervising virtual asset service providers (VASPs), ensuring full compliance with Financial Action Task Force (FATF) guidelines and global best practices.
The approval of this authority marks a critical milestone. Once legislation is finalized, VARA will not only issue licenses but also set technical standards, oversee industry operations, and align regulations with the FATF, IMF, and World Bank recommendations.
VARA's scope will cover consumer protection, anti-money laundering (AML) measures, and cybersecurity. This progressive step demonstrates Pakistan’s ambition to become a regional hub for blockchain technology, combining independent oversight with energy-efficient digital operations.
Officials noted that the launch of VARA reflects the national resolve to lead the digital asset ecosystem in Pakistan and position the country as a secure, innovation-driven crypto hub in South Asia.
The regulatory clarity is expected to boost investor confidence, attract foreign investment, and accelerate blockchain innovation. This move lays the foundation for a secure digital financial future, where modern technologies fuel economic growth and create new job opportunities.
With over 40 million crypto users and an estimated $300 billion in annual informal crypto trading, Pakistan is already an emerging crypto market. Despite past regulatory uncertainty, the country's young population—70% of whom are under 30—quickly embraced blockchain technologies.
With a population of 240 million and rapidly expanding digital infrastructure, Pakistan now holds a rare opportunity to build a strong secure digital financial future. Industry experts believe that the new authority will not only regulate but also nurture the market, creating an environment where innovation and compliance go hand in hand.
