Pakistan Launches Crypto Regulatory Body for Digital Asset Sector
Pakistan has established the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee its digital asset sector. This initiative aims to regulate cryptocurrencies and ensure compliance with international standards, including those set by the Financial Action Task Force (FATF). By doing so, Pakistan demonstrates its commitment to fostering financial innovation while safeguarding consumers and attracting global investment.
Key Functions of PVARA
PVARA will license, monitor, and supervise virtual assets service providers. Its role includes ensuring the digital asset industry adheres to global best practices and creating a secure environment for cryptocurrency transactions.
Challenges and International Collaborations
Despite challenges, such as opposition from the International Monetary Fund (IMF), Pakistan is advancing its digital finance strategy. The country has allocated surplus electricity for Bitcoin mining and is seeking collaborations with global leaders in the cryptocurrency space.
Why This Matters
- PVARA positions Pakistan as a frontrunner in crypto regulation.
- The regulatory body aligns with FATF guidelines to mitigate financial crimes.
- Pakistan’s digital finance strategy progresses despite IMF resistance.
