Asia has been taking the lead in regulating and investing in digital assets, with Kazakhstan investing over $350 million in crypto and Pakistan passing the Virtual Assets Act of 2026.
Pakistan legally formalizes digital currency oversight
Pakistan’s parliament passed the Virtual Assets Act of 2026 on March 4, establishing the Pakistan Virtual Assets Regulatory Authority (PVARA) to regulate digital assets in the country.
“A year ago, Pakistan’s digital asset landscape was defined by uncertainty and grey areas. Today, we have the country’s first Act of Parliament establishing a regulatory body for virtual assets, building on the Presidential Ordinance introduced in 2025,” PVARA Chairman Bilal Bin Saqib posted on X.
Established in July 2025, the PVARA framework aims to license, regulate, and supervise virtual asset service providers (VASPs) operating in Pakistan. It is designed to promote transparency and ensure the integrity of the digital currency market while protecting investors, the Pakistan Virtual Assets Regulatory Authority posted on X last March 6.
In addition, PVARA will be responsible for setting and enforcing anti-money laundering provisions and international sanctions.
“With NOCs already issued and banking rails being developed in coordination with the State Bank of Pakistan, we are now moving toward a comprehensive licensing framework aligned with global AML and financial integrity standards,” Bin Saqib remarked.
Since November 2024, Pakistan has been seeking to regulate digital currencies as legal tender, amid long-standing resistance from regulators who claimed they would never be legalized into the financial system.
However, it may prove wrong, as the PVARA bill will now be passed in both the Senate and Pakistan’s National Assembly. However, it still needs to be signed by President Asif Ali Zardari to become law.
Kazakhstan upping the ante in digital currency investments
Elsewhere in Asia, Kazakhstan’s central bank has designated a portfolio of up to $350 million in gold and foreign exchange for investment in digital currency, Governor Timur Suleimanov told Reuters on March 6.
“We are currently developing a list of instruments in which we will invest. This includes not only cryptocurrency itself,” Timur said. “These include shares of high-tech companies related to cryptocurrencies and digital financial assets, index funds and other instruments that exhibit similar dynamics to crypto assets.”
According to Aliya Moldabekova, Kazakhstan’s central bank deputy chair, the investments will begin in April or May, and the central bank is now selecting companies.
“We are not talking about any large investment in cryptocurrencies. We are currently selecting companies that deal with digital assets. For example, those involved in cryptocurrency infrastructure,” she said.
As of February 1, the Central Asian country had central bank gold and foreign exchange reserves amounting to approximately $69.40 billion. Meanwhile, the assets of Kazakhstan‘s national fund totaled $65.23 billion.
Deep dive into digital assets development in Pakistan and Kazakhstan
Apart from digital currency investments, Kazakhstan and Pakistan have been making waves in the stablecoins and digital transformation initiatives.
In September 2025, the Kazakhstan economy has seen improvements in integrating emerging technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) to digitize its economy. This digitalization push follows a 2024 directive from President Kassym-Jomart Tokayev to position the country as a leader in next-gen technologies. The country’s largest financial center also launched a pilot for USD-backed stablecoin payments for licensing and supervision fees.
Recently, Pakistan’s Ministry of Finance signed a memorandum of understanding (MOU) with an affiliate of World Liberty Financial to explore innovations in digital finance. PVARA stated that this agreement indicates a growing global interest in Pakistan as a key market for digital assets. In 2025, PVARA invited global digital asset companies to apply for licensing in the country, encouraging them to access Pakistan’s market of digital asset enthusiasts.
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Source: https://coingeek.com/pakistan-crypto-law-meets-kazakhstan-350m-bet/