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Cabinet officials

Pakistan Takes a Pivotal Step Towards Embracing Virtual Assets and Blockchain

Strategic Insights

— 2 min read

The Pakistan Virtual Assets Regulatory Authority (PVARA) held its first board meeting, deliberating on key aspects of the country's journey towards embracing blockchain, virtual assets, and the digital economy. The meeting brought together high-profile stakeholders, including Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, and Minister of State for Crypto and Blockchain Bilal bin Saqib. The Finance Minister hailed the establishment of PVARA as a transformative milestone, emphasizing its critical role in positioning Pakistan as a leader in the global virtual assets economy.

Key Takeaways:

  • The Pakistan Virtual Assets Regulatory Authority (PVARA) deliberated on granting permission to financial institutions to deal in virtual currencies and tokens, effectively overturning the State Bank of Pakistan's 2018 directive to refrain from dealing in virtual currencies and tokens.
  • The meeting was attended by Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, as a special invitee, alongside key stakeholders, including representatives from the National Cyber Crime Investigation Agency (NCCIA).
  • The Board prioritized operationalizing PVARA to align with international Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) standards and establishing the Authority's core framework.
  • Dedicated committees were formed to focus on sandbox experimentation, taxation policies, regulatory drafting, and international engagement to accelerate progress.
  • A draft of the proposed licensing framework was shared with members for consultation, which will be finalized in the coming days.
  • PVARA will hold bi-monthly meetings for the first six months to ensure robust feedback and stakeholder consultation.
  • The Board also approved the creation of a complaint portal, developed in collaboration with the National Cyber Crime Investigation Agency (NCCIA), to address concerns related to virtual assets and provide timely redressal.
  • Chairman Bilal bin Saqib emphasized PVARA's goal of safeguarding financial integrity while fostering innovation, investment, and opportunity in the virtual assets space.
  • The Finance Minister reiterated the government's unwavering support for PVARA, underscoring its role in promoting the responsible adoption of virtual assets and strengthening Pakistan's financial system against illicit activities.

Statistics:

  • The Pakistan Virtual Assets Regulatory Authority (PVARA) is established to promote the responsible adoption of virtual assets and strengthen Pakistan's financial system against illicit activities.
  • The Authority will engage with key stakeholders, including the National Cyber Crime Investigation Agency (NCCIA), to ensure robust feedback and stakeholder consultation.
  • A complaint portal will be created in collaboration with the National Cyber Crime Investigation Agency (NCCIA) to address concerns related to virtual assets and provide timely redressal.
  • PVARA will hold bi-monthly meetings for the first six months to ensure effective implementation of its goals and objectives.
  • The Authority's core framework will be established to align with international Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) standards.

Sources:

  • Press release issued by PVARA following its first board meeting.
  • Remarks made by Chairman Bilal bin Saqib and Senator Muhammad Aurangzeb during the meeting.
  • Comments made by the Finance Minister, underscoring the government's support for PVARA.

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