Technology
Behind the Scenes: Pakistan’s New Crypto Regulation Era
By HTG
“We are regulating not to catch up, but to lead.” — Muhammad Aurangzeb, Federal Finance Minister
1. Two New Bodies, One Grand Strategy
| Body | Launched | Legal Form | Core Mandate |
|---|---|---|---|
| Pakistan Crypto Council (PCC) | 14 March 2025 | Government-backed policy & promotion council | Draft national strategy, attract investment, run pilots |
| Pakistan Virtual Assets Regulatory Authority (PVARA) | 8 July 2025 | Autonomous regulator under Virtual Assets Ordinance, 2025 | Licence, supervise, and enforce compliance for every crypto service provider |
Think of PCC as the think-tank and PVARA as the cop on the beat.
2. Who Sits at the Table? (Org-Chart Snapshot)
PCC Leadership
- Chairman: Muhammad Aurangzeb (Finance Minister)
- CEO: Bilal Bin Saqib (now Special Assistant to PM with Minister of State rank)
- Strategic Adviser: Changpeng Zhao (ex-CEO Binance)
- Board: Governor SBP, SECP Chairman, Federal Secretaries (Law & IT)
PVARA Governing Board
- Chairperson: Appointed by Federal Govt (finance/law/tech expertise)
- Ex-Officio Members: SBP Governor, SECP Chair, FBR Chair, IT Secretary
- 2 Independent Directors: Crypto/tech veterans
- Shariah Advisory Committee: Islamic-compliance rulings for every licensed product
3. Licensing Regime—What It Means for You
| Activity | Licence Needed | Sandbox Option? | Shariah Clearance? |
|---|---|---|---|
| Crypto Exchange | Category A VASP | Yes (90-day pilot) | Mandatory for Islamic product label |
| Mining Farm | Category B Infrastructure | Yes | Optional, but recommended |
| Wallet Provider | Category C Custody | No-action letter possible | Mandatory |
| DeFi Protocol | Category D Innovation | Sandbox only | Mandatory |
Timeline:
- Application portal opens 1 Oct 2025
- Licences issued Q1 2026
- Grace period ends 30 Jun 2026—unlicensed operators face fines & shutdowns.
4. Compliance Playbook (TL;DR)
- FATF Travel Rule on every transaction ≥ $1,000
- Real-time suspicious-transaction reporting via API to PVARA
- Segregated customer funds in State Bank-approved custodian banks
- Quarterly audits by Big-4 firms
- 2,000 MW surplus-energy clause—licensed miners get subsidised electricity
5. Immediate Impact on Key Stakeholders
🇵🇰 Freelancers & Remittance Users
- Crypto-to-PKR ramps become legal once exchanges obtain VASP-A licences.
- Expected fee drop: from 8% (informal hawala) to <2% (regulated exchanges).
⛏️ Miners
- Surplus-energy tariff: $0.04/kWh vs $0.12/kWh commercial for licensed farms
- Tax holiday: 3-year income-tax exemption for miners who set up before 31 Dec 2025.
🏦 Banks & Fintechs
- Digital Rupee pilot (CBDC) to run parallel to private stable-coins.
- Sandbox exemption: banks can test tokenised deposits without full VASP licence.
🌐 Global Investors
- Single-window clearance via PVARA’s InvestPak Crypto Portal (English & Chinese UX).
- Strategic Bitcoin Reserve: Pakistan plans to hold 1% of forex reserves in BTC—advised by Zhao.
6. How to Get Ready—Week-by-Week Road-Map
| Week | Action |
|---|---|
| 1 | Register on PVARA portal (opens 1 Oct) → submit intent-to-license form |
| 2 | Legal housekeeping: incorporate local entity, draft AML/CFT manual |
| 3 | Technical audit: segregated wallets, API hooks for real-time reporting |
| 4 | Shariah application: submit product white-paper to Shariah Advisory Committee |
| 5 | Sandbox entry (if DeFi/mining) → 90-day pilot with relaxed capital rules |
7. Toolkit & Resources (All Free)
| Need | Link |
|---|---|
| VASP licence checklist | pvara.gov.pk/apply |
| AML template | FATF Pakistan Toolkit |
| Surplus-energy application | NTDC surplus portal |
| Shariah ruling request | Shariah Advisory PVARA |
8. Bottom Line
- Pakistan has moved from regulatory limbo to structured enablement in under six months.
- PCC attracts talent and capital.
- PVARA enforces rules that protect consumers and unlock innovation.
- Early movers (licences filed before 31 Dec 2025) enjoy tax holidays, cheap power, and first-mover credibility.
- Latecomers risk fines, shutdowns, and reputational damage.
“The window is open now—step through it before the shutters come down.”
