ISLAMABAD – The federal government has decided to establish the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee and regulate all matters related to virtual assets, including cryptocurrencies.
Reports said the newly planned authority will be responsible for licensing, regulation, and supervision of virtual asset services in Pakistan. It will also ensure that the licensing process aligns with international standards set by the Financial Action Task Force (FATF) and the International Monetary Fund (IMF).
The licensing framework for crypto businesses is expected to be finalized within the next three months. Due to the sensitive nature of cryptocurrency regulation, authorities are in talks with countries where crypto assets are already operational, to ensure comprehensive and effective oversight.
The authority will play a key role in monitoring user activity, maintaining transaction histories, and preventing money laundering.
It will have access to real-time information about licenced entities and will also be authorised to share data with national and international agencies, subject to federal government approval.
The authority will develop guidelines in line with FATF requirements and will work closely with other regulatory and enforcement agencies. It will oversee service providers dealing in virtual assets, ensure compliance with relevant laws, and take necessary measures to safeguard against financial crimes.
