Pakistan Advances Digital Asset Regulation as SBP and PVARA Align on Policy

Pakistan Advances Digital Asset Regulation as SBP and PVARA Align on Policy

Pakistan is moving steadily toward a regulated digital asset ecosystem as the State Bank of Pakistan (SBP) intensifies consultations with the Pakistan Virtual Assets Regulatory Authority (PVARA). A recent high-level meeting between SBP Governor Jameel Ahmad and PVARA Chairman Bilal bin Saqib signals growing coordination on digital asset adoption, regulatory design, and the potential launch of a central bank digital currency (CBDC).

The discussions focused on shaping a comprehensive virtual assets framework that aligns with global standards while safeguarding financial stability. This momentum follows the promulgation of the Pakistan Virtual Assets Ordinance 2025, issued in July, which provides the legal foundation to license, regulate, and supervise virtual assets and service providers. Under the ordinance, PVARA was established as the dedicated regulator for crypto and blockchain-related activities.

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In parallel, the Ministry of Finance has stepped up engagement with global industry players. A recent memorandum of understanding with Binance aims to explore blockchain use cases, including tokenisation of state-owned assets. Pakistan may consider tokenising up to $2 billion in assets such as sovereign bonds, treasury bills, and key commodities, reflecting a broader push toward financial innovation.

PVARA has also issued preliminary no-objection certificates to Binance and HTX, enabling them to begin local licensing and anti-money laundering registration, though operational activity remains restricted at this stage. This phased approach highlights regulators’ focus on compliance and risk management.

With an estimated 40 million crypto users and annual trading volumes exceeding $300 billion, Pakistan ranks among the world’s largest retail crypto markets. As the SBP prepares a CBDC pilot and finalises virtual asset legislation, the country appears poised to balance innovation with regulatory discipline, supporting long-term digital finance growth.