Pakistan Approves PVARA to Regulate $300B Crypto Market and Mining Sector
In a major step towards digital finance modernization, Pakistan’s Federal Cabinet has approved the creation of Pakistan Virtual Assets...
Quick overview
- Pakistan's Federal Cabinet has approved the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) to regulate the country's digital asset ecosystem.
- PVARA will license Virtual Asset Service Providers, enforce anti-money laundering protocols, and ensure compliance with international standards.
- The government plans to create a Strategic Bitcoin Reserve and allocate surplus electricity for Bitcoin mining, positioning Pakistan as a regional digital infrastructure hub.
- With a young population and a growing number of crypto users, Pakistan aims to transition from an informal market to a regulated digital finance economy.
In a major step towards digital finance modernization, Pakistan’s Federal Cabinet has approved the creation of Pakistan Virtual Assets Regulatory Authority (PVARA). This independent body will be the primary regulator for the country’s growing digital asset ecosystem which is estimated to be $300 billion in informal annual trading volume.
Once legislated, PVARA will license and supervise Virtual Asset Service Providers (VASPs), enforce anti-money laundering (AML) protocols and FATF standards. It will also oversee cybersecurity risk management and ensure virtual asset transactions meet international compliance and safety standards.
This comes just less than 4 months after the formation of Pakistan Crypto Council (PCC) – a national body launched on March 14, 2025 and chaired by Finance Minister Muhammad Aurangzeb. PCC includes key government figures such as SECP Chairman, State Bank Governor, IT and Law Secretaries to have a unified regulatory framework.
Strategic Bitcoin Reserve and Energy Allocation
At Bitcoin 2025 Conference in Las Vegas, Pakistan announced plans to create a Strategic Bitcoin Reserve – a move to hold Bitcoin as a sovereign financial asset. This will strengthen macroeconomic resilience and integrate digital assets in long term fiscal planning.
To support blockchain operations, government has allocated 2,000 MW of surplus electricity for Bitcoin mining and AI data centers. This will monetize excess energy and position Pakistan as a regional hub for digital infrastructure.
Key features of the initiative are:
- Utilize underutilized energy for crypto and AI operations
- Partnerships with sustainable mining companies
- Focus on low emission, high efficiency energy usage
- Strategic reserves to protect against currency devaluation
This will attract global investment while being economically and environmentally viable.
Pakistan’s Youth Driven Crypto Surge
Pakistan’s crypto momentum is backed by strong demographic and technological trends. With over 40 million active crypto users, 240 million population and more than 70% under 30, the country is ready for digital asset growth. Rapidly expanding internet and mobile penetration is a fertile ground for innovation.
Establishment of PVARA is a foundation pillar in Pakistan’s journey to become a global crypto player. Along with sovereign Bitcoin reserves and large scale infrastructure investments, the country is moving from an informal market to a regulated digital finance economy.
This whole of government approach puts Pakistan on a strategic path to lead the global virtual asset space.
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