Pakistan Establishes Crypto Regulatory Authority to Oversee Bitcoin and Digital Assets

In a move that has stunned the world, the Pakistani government has officially launched a crypto regulatory authority to oversee digital assets. The Pakistan Virtual Assets Regulatory Authority (PVARA) has been launched as a dedicated body that will regulate, license, and oversee cryptocurrency and Bitcoin activity in the country.

This announcement marks a major policy shift in the country from previous years, when crypto activities were always operated in the legally grey areas. This latest development has signaled the South Asian country’s intent to fully embrace virtual assets and blockchain technology in its broader economic strategy.

Pakistan Launched PVARA to Oversee Crypto Activity

The launch of PVARA is seen as a response to the increasing global momentum surrounding digital assets and the rising demand for regulatory clarity. PVARA was created after extensive efforts by the Pakistan Crypto Council (PCC). The PCC consists of a group of stakeholders that includes members from governmental and regulatory bodies. The aim of the council is to create a regulatory framework responsible for secure and responsible crypto development in the country.

The Minister of State for Blockchain and Cryptocurrency says that the new authority will work on its own and be in charge of giving licenses to Virtual Asset Service Providers (VASPs), keeping an eye on their activities, and making sure they follow all international rules, especially those set out by the Financial Action Task Force (FATF).

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"The proposed authority will operate as an independent regulator dedicated to licensing, monitoring, and supervising virtual asset service providers (VASPs), while ensuring full alignment with FATF guidelines and international best practices," stated the Minister of State for Blockchain and Cryptocurrency, Pakistan.

By following the FATF's guidelines, the Pakistani government hopes to halt illegal financial activities and make it easier for people to use cryptocurrencies. Pakistan has set aside 2,000 megawatts of electricity specifically for mining Bitcoin.

PVARA is supposed to encourage innovation in Pakistan, make it safer for digital asset trading, and bring in investors from around the world. Analysts think that this choice could lead to a lot more blockchain companies, jobs, and access to financial services, especially in areas of the country that are far away and not getting much attention.

If Pakistan follows international regulations, it might be a more attractive site for foreign investors in the Fintech and Web3 sectors.