The Pakistan Virtual Assets Regulatory Authority (PVARA) has initiated work on a formal regulatory framework for digital assets, marking a significant step toward regulating the country’s emerging cryptocurrency and virtual assets market.

In a key development, the authority has established a consultative group comprising industry leaders, including founders, chief executives, technologists, and financial sector innovators, to help shape the upcoming regulatory structure.

The announcement was made by PVARA Chairman Bilal Bin Saqib during a sector briefing held with stakeholders from Pakistan’s digital assets ecosystem. He emphasized that the new framework would be developed through direct engagement with industry participants rather than unilateral policymaking.

According to officials, the consultative group will work closely with Pakistan Virtual Assets Regulatory Authority to design policies that address licensing, legal clarity, and investor protection while also encouraging innovation in the sector.

The regulator aims to establish a balanced framework that ensures market security and safeguards public interest, while also enabling growth in digital financial services.

During the briefing, the chairman highlighted Pakistan’s broader economic context, noting that the country receives approximately $38.3 billion in annual remittances and has over 100 million adults outside the formal financial system. He described virtual assets as a potential infrastructure layer for expanding financial inclusion.

He also encouraged greater private sector investment in emerging technologies such as artificial intelligence, robotics, and blockchain, describing them as interconnected pillars of a future technology-driven economy.

Officials said the ongoing consultations are expected to play a key role in shaping Pakistan’s first comprehensive regulatory framework for virtual assets, as the country moves toward integrating digital finance into its formal economic system.