In a major policy shift, Pakistan is going to officially legalise cryptocurrency trading. The Virtual Assets Ordinance, 2025, signed by the President, creates a legal framework for digital assets and establishes a new federal body, the Pakistan Virtual Asset Regulatory Authority (PVARA).

This move replaces the previous ban and aims to bring the country's multi-billion-dollar crypto market into a regulated environment. The change is driven by a need to align with international standards, particularly those of the FATF, and to promote innovation in the digital economy.

The new law will require crypto service providers to be licensed by PVARA and will introduce consumer protections, formalizing an industry that previously operated in a legal grey area. The State Bank of Pakistan has also given its "in-principle approval" for the move and is now planning to pilot its own Central Bank Digital Currency (CBDC), the "Digital Rupee."

This is a significant step that positions Pakistan to benefit from the global digital finance revolution by fostering innovation and creating a secure, transparent, and regulated market for digital assets. #pakistancryptoupdate