Technology
Behind the Scenes: Pakistan's New Crypto Regulation Era
By Huzi
Inside PCC & PVARA—the twin engines that will decide if Pakistan becomes South Asia's blockchain hub or another cautionary tale
"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 in or from Pakistan |
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
👑‡µ👑‡° 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).
â›ï¸ 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.
👑Œ 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."
