Pakistan’s Integration of Cryptocurrency Firms
Pakistan is taking significant steps towards integrating international cryptocurrency firms into its financial ecosystem. The newly established Pakistan Virtual Asset Regulatory Authority (PVARA) has formally invited major exchanges and virtual asset service providers (VASPs) to submit Expressions of Interest (EoIs) for operating licenses within the country. According to local media outlet Dawn, PVARA believes this initiative represents a pathway toward a more transparent and inclusive digital financial future for Pakistan.
Invitation for Expressions of Interest
Bilal bin Saqib, who chairs PVARA and serves as the state minister for crypto and blockchain, emphasized the importance of this call, which is aimed specifically at top-tier VASPs that are already recognized and licensed by reputable regulatory agencies. Eligible firms include those regulated by the US Securities and Exchange Commission (SEC), the United Kingdom’s Financial Conduct Authority, and other international bodies like the Monetary Authority of Singapore and the UAE’s Virtual Assets Regulatory Authority.
Requirements for Interested Parties
Interested parties must provide detailed documentation including their company profiles, existing licenses, and an outline of the services they propose to offer, such as trading, custody, and payment solutions. Furthermore, they must meet technology and security standards and present their track record in compliance and their specific business plans tailored to the Pakistani market. This regulatory framework is designed not only to combat illicit financial activities but also to promote opportunities in fintech, remittances, and tokenization, including the development of Shariah-compliant financial products via regulatory sandboxes.
Regulatory Framework and International Alignment
The establishment of PVARA is governed by the Virtual Assets Ordinance 2025 and its mandates align with the guidelines set forth by notable international organizations, including the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank.
Pakistan’s Growing Crypto Market
In recent months, Pakistan has gained recognition in the cryptocurrency sector, currently ranking third globally in crypto adoption according to Chainalysis’ 2025 Global Crypto Adoption Index. This ascent is reflective of Pakistan’s swift transition into a burgeoning crypto market, with strategic initiatives such as the upcoming government-led Bitcoin Strategic Reserve and plans to allocate 2,000 megawatts of surplus electricity for Bitcoin mining and AI centers, backed by the Pakistan Crypto Council and the Finance Ministry.
Challenges Ahead
However, not all developments have been smooth. In July, the IMF raised alarms regarding the potential use of surplus electricity for cryptocurrency mining operations, notably turning down proposals for budgetary support to assist energy-heavy sectors, including Bitcoin producers. These mixed signals indicate a complex landscape as Pakistan navigates its future in the digital asset arena.
