Govt to License Banks, Exchange Companies for Crypto Operations

The federal government has begun implementing its virtual asset regulatory framework. It held a high-level meeting in Islamabad on Tuesday with banks, exchange companies, and jewellery sector representatives. The meeting aimed to brief stakeholders on the Virtual Assets Act, 2025, which was formally approved on July 9, 2025, following clearance from the Cabinet, Prime Minister, and President. The law establishes the Pakistan Virtual Asset Regulatory Authority (PVARA) to license, regulate, and monitor entities dealing in virtual assets, including cryptocurrencies. PVARA will ensure compliance with international standards such as those of the Financial Action Task Force (FATF). Exchange companies and banks were informed they would be granted licenses to operate in the virtual asset sector under the new law. Also in attendance, central bank Governor Jameel Ahmed also reiterated that the central bank is finalizing legislation for a central bank digital currency (CBDC) and plans to launch a pilot project. The meeting follows the government’s earlier announcement in February 2025 to establish the Pakistan Crypto Council to coordinate policy and the adoption of virtual assets.