Pakistan ends crypto ban, launches regulatory framework and invites global firms

Licensing framework and open invitation to investors

Announcing the new Virtual Assets Act, Bilal Bin Saqib, special assistant to the prime minister on blockchain and cryptocurrency, invited foreign companies to operate in Pakistan’s digital asset market. He stated in an X post on Friday that global digital asset businesses can now access a formal licensing portal to establish and legitimize their operations.

The Virtual Assets Act provides a legal framework to oversee the management and development of virtual assets, as well as regulate related businesses. Bin Saqib presented the new system as an open door for international companies seeking regulatory clarity.

For approximately a decade, Pakistan’s answer to virtual assets was complete permission and complete ban, but technology never waits for permission. To the companies watching from outside, the front door is open for you. Come, get licensed. Come, get banked. Come, build here under rules that are clear, public, and enforceable.

He emphasized that Pakistan now offers explicit regulations, a supervising authority, and a formal licensing process aimed at integrating virtual assets into the formal economy, protecting consumers, and establishing a modern financial infrastructure.

Licensing regulations and the official portal are now active following approval of the Virtual Assets Act by the senate and its signing into law by President Asif Ali Zardari earlier this year.

The Pakistan Virtual Assets Regulatory Authority, known as PVARA, has been established as the principal body responsible for supervising the country’s digital asset sector.

Mini dictionary: Pakistan Virtual Assets Regulatory Authority (PVARA) – The government agency designated to oversee licensing, regulation, and enforcement of Pakistan’s virtual asset sector in line with the 2026 Virtual Assets Act.

Shift towards a digital asset economy

In recent years, Pakistan has adopted a more crypto-friendly approach. In 2025, the government unveiled plans to create a national strategic Bitcoin reserve during the Bitcoin 2025 conference.

The government also dedicated 2,000 MW of surplus electricity to Bitcoin mining and AI data centers. Officials stated that this initiative aims to generate new revenue streams, create jobs, and attract foreign capital.

International connections and diplomatic links

Pakistan’s growing involvement with virtual assets intersects with its diplomatic outreach. The country has taken a role as a mediator between the United States and Iran and established ties with World Liberty Financial (WLF), a digital asset project affiliated with Donald Trump.

Shortly after President Donald Trump’s return to office, WLF executives traveled to Islamabad for meetings with the Pakistani prime minister, reflecting Pakistan’s efforts to attract digital finance investments and foster international partnerships.