Behind the Scenes: Pakistan’s New Crypto Regulation Era

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

🇵🇰 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.