ISLAMABAD – The federal cabinet on Monday approved the establishment of the Virtual Assets Regulatory Authority to boost the crypto economy in the country.
According to a statement issued by the Office of the Special Assistant to the Prime Minister on Blockchain and Crypto, the establishment of the Virtual Assets Regulatory Authority marks a historic step toward creating a comprehensive legal and institutional framework for the country’s rapidly growing digital asset ecosystem.
The statement said the proposed authority will function as an autonomous regulator, responsible for issuing licenses, supervising, and monitoring virtual asset service providers, while ensuring full compliance with FATF guidelines and international best practices.
The cabinet’s approval of the Virtual Assets Regulatory Authority is a key milestone in this journey. Following legislation, the authority will be tasked with issuing licenses, monitoring institutions, setting technical standards, and aligning with guidelines from FATF, IMF, and the World Bank.
The scope of the authority will extend to public safety, anti-money laundering efforts, and cyber threat prevention. Its hybrid model—covering decentralized assets, energy consumption, and robust regulations—reflects Pakistan’s national ambition to become a regional hub for digital assets in South Asia.
The statement added that this initiative will build trust, attract foreign investment, and promote innovation in the blockchain sector, laying the foundation for a secure, inclusive, and future-ready digital economy.
Pakistan has become an emerging market with over 40 million crypto users and $300 billion in annual informal trading. Despite past regulatory uncertainty, Pakistani youth, 70% of whom are under 30, rapidly embraced blockchain technology.
With a population of 240 million and fast-growing digital infrastructure, the statement concluded, Pakistan presents a unique opportunity to establish a strong crypto economy.
