The Pakistan Virtual Assets Regulatory Authority (PVARA), in its first board meeting on Tuesday, deliberated on withdrawing the State Bank of Pakistan’s (SBP) 2018 ban on virtual currencies while setting out a roadmap for AI-driven risk management, licensing, and regulatory frameworks.
PVARA board, in its meeting in Islamabad, “discussed the withdrawal of BPRD Circular No. 03 of 2018, issued by the SBP, which had directed financial institutions to refrain from dealing in virtual currencies and tokens,” read an official statement.
As per the SBP circular, virtual currencies (VCs) like Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond etc. or Initial Coin Offerings (ICO) tokens are not legal tender, issued or guaranteed by the Government of Pakistan.
“SBP has not authorised or licensed any individual or entity for the issuance, sale, purchase, exchange or investment in any such Virtual Currencies/Coins/Tokens in Pakistan.
“In view of the foregoing, all Banks/ DFIs/ Microfinance Banks and Payment System Operators (PSOs)/Payment Service Providers (PSPs) are advised to refrain from processing, using, trading, holding, transferring value, promoting and investing in virtual currencies/tokens.
“Further, banks/DFIs/Microfinance Banks and PSOs/PSPs will not facilitate their customers/account holders to transact in VCs/ICO tokens.
Aurangzeb stresses need for crypto embrace
Moreover, under SBP directive any such transaction shall immediately be reported to Financial Monitoring Unit (FMU) as a suspicious transaction.
PVARA meeting on Tuesday was attended by Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, as a special invitee, alongside Minister of State for Crypto and Blockchain and PVARA Chairman Bilal bin Saqib, the Governor of the State Bank of Pakistan (SBP), federal secretaries of the Ministries of IT and Law and Justice, Chairman of the Federal Board of Revenue (FBR), Chairman of the Securities and Exchange Commission of Pakistan (SECP), and key stakeholders, including representatives from the National Cyber Crime Investigation Agency (NCCIA).
In his address, the finance minister hailed the establishment of PVARA as a transformative milestone in Pakistan’s economic evolution.
He emphasized the authority’s critical role in positioning Pakistan as a leader in the global virtual assets economy.
During the meeting, the PVARA board deliberated on key priorities, including operationalising PVARA to align with international Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) standards, recommending independent directors with expertise in virtual assets for approval, and establishing the authority’s core framework.
“To accelerate progress, the board agreed to form dedicated committees focused on sandbox experimentation, taxation policies, regulatory drafting, and international engagement. A draft of the proposed licensing framework was also shared with the members for consultation, which will be finalized in the coming days.
“Additionally, 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,” read the statement.
PVARA Chairman Bilal bin Saqib remarked: “Today is a defining moment for Pakistan’s virtual assets ecosystem. PVARA will safeguard financial integrity while fostering innovation, investment, and opportunity in the virtual assets space. Our goal is to build trust domestically and enhance Pakistan’s credibility as a forward-thinking player in the global virtual assets economy.”
