President Zardari has approved the ‘Virtual Assets Ordinance, 2025’ to create a crypto regulator.
Earlier, officials had confused the public by referring to it as the ‘Virtual Assets Act, 2025.’ However, later, authorities clarified that it was an ordinance, not an act. The government used Article 89 to issue it during a parliamentary break. This ordinance stays valid for 120 days.
According to the Gazette of Pakistan (dated July 9, 2025), the ordinance (No. VII of 2025) came into effect on July 8. It creates a new regulator for crypto licensing and oversight.
Soon after, the SAPM on blockchain and crypto released a statement. He said, “The president has approved the landmark Virtual Assets Act 2025 on the prime minister’s advice.”
The statement also noted that the cabinet, the PM, and the president all endorsed it. This law sets up the Pakistan Virtual Asset Regulatory Authority (PVARA).
PVARA will license, regulate, and supervise crypto companies. It aims to improve transparency, ensure compliance, and prevent illegal activities.
To align with FATF rules, the authority will enforce global standards. Its board will include the State Bank governor and top government secretaries.
Moreover, heads of SECP, FBR, and Digital Pakistan Authority will join the board. The government will appoint two outside experts in tech, finance, or law.
It will choose the chairperson based on proven experience in law, finance, tech, or regulation. Anyone offering crypto services must now apply for a PVARA license.
The licensing process will require incorporation, operations capacity, and a reporting setup. Additionally, the law introduces a regulatory sandbox for testing innovation.
PVARA can also issue no-action letters to support new ideas under limits. To ensure Sharia compliance, the law forms a special Sharia Advisory Committee.
Licensed firms offering Islamic financial products must follow the committee’s rulings. For appeals, a Virtual Assets Appellate Tribunal will act with full independence. It will feature judges and experts in law, tech, and finance. Notably, this move came less than four months after Pakistan launched the Crypto Council.
Finance Minister Muhammad Aurangzeb leads the Council. Meanwhile, Bilal Bin Saqib serves as CEO and holds the title of PM’s special assistant.
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