KARACHI: Pakistan is mulling a new virtual asset regulator to oversee digital finance and cryptocurrency ecosystem in the country, it emerged on Monday, following a meeting of the Pakistan Crypto Council (PCC).

Pakistan set up the PCC in March to create a legal framework for cryptocurrency trading in a bid to lure international investment. In April, Pakistan introduced its first-ever policy framework to set rules for how digital money like cryptocurrencies and the companies that deal in it should operate in Pakistan. The policy has been formulated to align with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF).

Last month, the government also approved setting up the Pakistan Virtual Assets Regulatory Authority (PVARA), a specialized regulatory body to oversee blockchain-based financial infrastructure.

On Monday, Finance Minister Muhammad Aurangzeb presided over a PCC meeting on the draft regulatory framework for digital and virtual assets in Pakistan, aiming to align with international standards and evolving technological trends.

“Participants also discussed various options around the establishment of an autonomous regulatory authority to oversee and regulate the digital finance and crypto ecosystem in the country,” the Pakistani finance ministry said after the meeting.

“It was agreed to constitute a technical committee comprising representatives from SBP (State Bank of Pakistan), SECP (Securities and Exchange Commission of Pakistan), Law Division, and IT & Telecom Division. The committee will review the draft laws and propose a robust framework and governance structure to be reviewed by the Pakistan Crypto Council in its next meeting.”

During the meeting, the ministry said, the PCC members provided valuable input to ensure a secure, transparent, and innovation-friendly regulatory environment, with the goal of promoting responsible blockchain adoption, safeguarding investors and advancing financial inclusion.

Finance Minister Aurangzeb, who is also the PCC chairman, appreciated the contributions of all stakeholders and reaffirmed the government’s commitment to building a future-ready financial infrastructure that supports innovation while maintaining financial stability and regulatory compliance.

Late last month, Pakistan announced the allocation of 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power bitcoin mining and artificial intelligence data centers. The allocation is the first phase of a broader, multi-stage digital infrastructure roll-out.

Bilal Bin Saqib, the CEO of the Pakistan Crypto Council, last week unveiled the country’s first government-led strategic bitcoin reserve at the Bitcoin 2025 conference in Las Vegas.

However, the central bank said it had not declared virtual assets illegal but had in 2018 advised regulated entities to avoid dealing in virtual currency “due to the absence of any legal and regulatory framework.”

“This was done to protect its regulated entities and their customers from the risks emanating due to the absence of legal and regulatory framework for VAs in the country,” the central bank said in a statement last week.

“The SBP and Finance Division are currently engaged with the Pakistan Crypto Council established by the Federal Government for, among others, developing an appropriate legal and regulatory framework for VAs in Pakistan. We understand that the legal and regulatory framework would provide the requisite clarity and legal coverage about the VAs ensuring consumer and investor protection.”