Pakistan Establishes Regulatory Authority for Digital Assets

According to Cointelegraph, Pakistan's federal government has initiated the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee the nation's digital asset sector. This new entity will function as an independent regulator, responsible for licensing, monitoring, and supervising virtual asset service providers. It aims to ensure compliance with international standards, particularly aligning with the Financial Action Task Force (FATF) guidelines. The establishment of PVARA follows a May announcement by Pakistan's Ministry of Finance, which supported the creation of this regulatory body. Muhammad Aurangzeb, Pakistan's Federal Minister for Finance and Revenue, emphasized the importance of regulation not only to catch up but to lead in the digital finance space. He stated that the framework is designed to protect consumers, attract global investment, and position Pakistan at the forefront of financial innovation. Despite these advancements, Pakistan's strategy has encountered challenges. The International Monetary Fund (IMF) recently rejected a proposal from Pakistan to provide subsidized power to energy-intensive industries, including Bitcoin miners. This decision came after reports in May that Pakistan had allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI centers, as part of broader digital transformation efforts led by the Pakistan Crypto Council and supported by the Ministry of Finance. In early June, Pakistan's Minister of State for Crypto and Blockchain, Bilal Bin Saqib, engaged in discussions with key figures such as Brandon Lutnick, chairman and CEO of Cantor Fitzgerald, and New York City Mayor Eric Adams. The meetings focused on topics like tokenization, Bitcoin mining, Pakistan's Web3 future, and potential collaborations. Additionally, Saqib met with Robert “Bo” Hines, executive director of U.S. President Donald Trump’s Council on Digital Assets, during a visit to the White House. The discussions centered on cooperation in crypto-centric initiatives, including Pakistan's mining operations and Bitcoin reserves.