Pakistan Forms Virtual Asset Regulator to Oversee Crypto

Pakistan has launched the Pakistan Virtual Asset Regulatory Authority (PVARA) for crypto oversight. Led by Finance Minister Muhammad Aurangzeb and Bilal Bin Saqib, the initiative is expected to align with FATF standards and attract institutional investments.

Pakistan established its Virtual Asset Regulatory Authority (PVARA) on July 8th to regulate digital assets, marking a significant step in adopting blockchain technology. The authority, led by Finance Minister Muhammad Aurangzeb and Bilal Bin Saqib, aims to oversee virtual asset service providers in line with international standards.

PVARA Initiated to Regulate Pakistan’s Digital Assets

PVARA’s establishment signifies Pakistan’s intent to regulate its burgeoning digital asset sector. With adherence to Financial Action Task Force standards, it aims to foster innovation while attracting institutional investments.

PVARA’s creation is linked to efforts by the Pakistan Crypto Council (PCC) to navigate crypto regulation. The regulatory body will issue licenses and oversee compliance with global standards. Chaired by Finance Minister Muhammad Aurangzeb, with CEO Bilal Bin Saqib, PVARA seeks to ensure compliance with FATF guidelines and secure digital asset transactions.

Notable reactions include international positive sentiment, as Pakistan joins several countries in formalizing digital asset frameworks. Muhammad Aurangzeb remarked, “PVARA will function as an independent regulatory body tasked with licensing, monitoring, and overseeing virtual asset service providers (VASPs) in alignment with Financial Action Task Force (FATF) standards and global best practices.”

Historical Context, Price Data, and Expert Analysis

Did you know? Pakistan’s new regulatory framework positions it alongside the UAE and Singapore, which have seen significant growth in digital asset markets after implementing similar regulations.

Bitcoin currently trades at $108,788.69, with a market cap of $2.16 trillion and dominance of 64.38%, according to CoinMarketCap. The 24-hour trading volume is $47.38 billion, with BTC showing a 0.31% price uptick in that period. Notably, BTC’s circulating supply is 19,889,350 out of a maximum of 21 million.

Experts from Coincu point out that comparable regulatory measures in other regions often lead to increased exchange activity and technology investments. Pakistan’s venture into digital asset regulation could trigger similar outcomes, potentially increasing market liquidity and promoting economic growth.