Pakistan and Kyrgyzstan have agreed to intensify their cooperation in the realm of cryptocurrencies and blockchain technology.
Pakistan Establishes Virtual Asset Regulatory Authority and Advances Digital Currency Efforts
Pakistan has taken a significant step in regulating and supervising virtual asset service providers (VASPs) and cryptocurrency activities within the country. The Pakistan Virtual Assets Regulatory Authority (PVARA) has been launched under the newly enacted Virtual Assets Act, 2025 [1][2][3][4][5].
The PVARA is an autonomous federal body financed and staffed with representation from key government and financial institutions, including the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), and Federal Board of Revenue (FBR), among others. The authority's mandate includes ensuring compliance with international standards such as those of the Financial Action Task Force (FATF), preventing illicit activities, and fostering innovation in the digital asset ecosystem [1][3][4][5].
The Virtual Assets Act received formal approval from Pakistan's Cabinet, Prime Minister Shehbaz Sharif, and President Asif Ali Zardari by early July 2025. In addition to the PVARA, the State Bank of Pakistan is advancing a pilot launch of a central bank digital currency (CBDC), often referred to as a digital rupee, which is expected to complement the broader digital economy strategy [1][2].
Bilal Bin Saqib, Minister of State for Crypto and Blockchain, has been actively engaging with international counterparts to share insights and learn from other countries' experiences. Recently, Saqib met with President Nayib Bukele of El Salvador, the first country to adopt Bitcoin as legal tender, to discuss avenues through which Pakistan could draw on these learnings to inform its own digital asset frameworks [6][7].
Saqib also met with the Executive Director of President Trump's Council on Digital Assets, Robert Bo Hines, to explore opportunities for collaboration [8]. Furthermore, Pakistan and Kyrgyzstan have agreed to enhance cooperation in crypto and blockchain technologies, with Saqib stating that Kyrgyzstan holds special significance for collaboration in innovation and regulatory frameworks related to digital assets [9].
In June, Saqib visited the US and held extensive meetings with top US lawmakers and New York City Mayor Eric Adams. However, there is no mention or confirmation in the provided sources about Pakistan establishing a Strategic Bitcoin Reserve or having explicit plans for acquiring a sovereign bitcoin reserve as of mid-2025 [1][2][3][4][5].
In summary, Pakistan has legally and institutionally formalized digital asset regulation via PVARA, and its future plans involve operationalizing this regulatory authority, launching a digital rupee pilot, and promoting innovation while ensuring alignment with global regulatory standards. The focus has primarily been on regulatory frameworks, licensing, and the CBDC pilot rather than direct state investment in cryptocurrencies like bitcoin.
- The Pakistan Virtual Assets Regulatory Authority (PVARA), an autonomous body tasked with regulating and supervising virtual asset service providers (VASPs) and cryptocurrency activities, has been established to ensure compliance with international standards and prevent illicit activities.
- The PVARA's mandate includes fostering innovation in the digital asset ecosystem, which may lead to the integration of cutting-edge technologies like blockchain into various sectors, potentially revolutionizing Pakistan's financial and technology landscape.
- As Pakistan advances its digital currency efforts, it is also learning from the experiences of other nations, such as El Salvador, which adopted Bitcoin as legal tender, to inform its own digital asset frameworks, potentially including the development of an index to track the performance of various cryptos, including assets like Bitcoin, in the Pakistani market.
