SBP and PVARA Move Toward Regulated Crypto Adoption in Pakistan

Pakistan’s approach to cryptocurrency regulation is entering a more coordinated phase as the Pakistan Virtual Assets Regulatory Authority (PVARA) and the State Bank of Pakistan (SBP) engage in discussions on shaping a comprehensive digital asset regulatory framework.

The engagement signals growing alignment between Pakistan’s virtual asset regulator and its central bank, a critical step as the country transitions from policy uncertainty toward structured, compliant crypto oversight.

For years, Pakistan’s crypto landscape operated in a regulatory grey zone. While adoption surged, institutional clarity lagged. The recent dialogue between PVARA and SBP reflects a shift from fragmented policymaking toward coordinated financial governance.

SBP’s involvement is especially significant. As the guardian of monetary stability, payments systems, and banking supervision, the central bank’s participation indicates that digital assets are now being treated as a systemic policy matter, not a fringe innovation.

Key Focus Areas of the Discussion

The discussions reportedly focused on several core areas critical to long-term crypto regulation:

• Integration of digital assets into the financial system
• Consumer and investor protection
• AML, CFT, and FATF compliance
• Financial stability and risk containment
• Regulatory boundaries between banks and virtual asset service providers

Rather than rushing adoption, authorities appear focused on risk-aware enablement, ensuring innovation does not compromise monetary control or financial integrity.

SBP’s Evolving Position on Crypto

Historically, the State Bank of Pakistan advised regulated entities to avoid dealing in virtual assets due to legal uncertainty. However, SBP has since clarified that cryptocurrencies were never formally declared illegal, reinforcing the need for regulation rather than prohibition.

This evolving stance aligns with global trends, where central banks increasingly acknowledge that crypto activity exists regardless of bans, making oversight and compliance frameworks the more effective solution.

PVARA’s Expanding Role

Established under Pakistan’s virtual assets legislation, PVARA is mandated to license, supervise, and regulate virtual asset service providers (VASPs).

Recent actions, including issuing No Objection Certificates (NOCs) to major exchanges and engaging with global crypto firms, indicate that PVARA is positioning itself as a primary enforcement and coordination body, similar to regulators in the UAE, Singapore, and the EU.

Collaboration with SBP strengthens PVARA’s authority and ensures regulatory decisions align with broader financial policy.

What This Means for Crypto in Pakistan

For Pakistan’s millions of crypto users, the PVARA–SBP dialogue sends a clear message:

Crypto regulation is moving from informal tolerance to structured governance.

This shift could:
✔ Improve user protection and reduce scams
✔ Increase institutional participation
✔ Encourage compliant exchanges and platforms
✔ Strengthen Pakistan’s standing with global regulators
✔ Build long-term trust in the digital asset ecosystem

For Crypto Pakistan, this marks a transition toward regulated adoption, not speculative growth.

A Measured, Global-Aligned Approach

Rather than rushing to legalize everything at once, Pakistan appears to be following a phased, FATF-aligned strategy, balancing innovation with risk management.

This approach mirrors successful regulatory models seen in jurisdictions that now lead in tokenization, regulated exchanges, and institutional crypto adoption.