ISLAMABAD: Pakistan is seeking closer cooperation with the United States on the regulation and governance of digital assets as it builds a formal policy and regulatory framework for cryptocurrencies and related technologies, Pakistan’s ambassador to Washington said on Tuesday, according to state broadcaster Radio Pakistan.

The outreach comes as Pakistan moves to bring digital assets into a regulated space after years of informal use and legal ambiguity. Earlier this year, the government set up a Pakistan Crypto Council to advise on policy, followed by the passage of a Virtual Assets Ordinance and the creation of a dedicated Pakistan Virtual Assets Regulatory Authority to oversee licensing, compliance and market supervision. Officials have described the steps as part of a broader effort to align with international standards while managing financial and regulatory risks.

The policy push has accelerated in recent weeks, with Pakistan announcing partnerships with global crypto firms, including Binance, and signing agreements with domestic exchange HSX aimed at improving compliance, investor protection and market infrastructure. Authorities say millions of Pakistanis already use digital assets, largely outside the formal financial system, prompting concerns over consumer risk, capital flows and regulatory oversight.

“Sheikh highlighted Pakistan’s massive strides in adoption and regulation of digital assets and cryptocurrencies,” Radio Pakistan reported, referring to comments by Pakistan’s Ambassador to Pakistan, Rizwan Saeed Sheikh, during a meeting with Patrick Witt, Executive Director at the US President’s Council of Advisers for Digital Assets.

“He said the establishment of Pakistan Crypto Council (PCC), Promulgation of Virtual Assets Ordinance/Act 2025, Creation of Pakistan Virtual Assets Regulatory Authority (PVARA) and a landmark shift in central Bank’s perspective are reflective of our conscious effort to put in place an institutional framework and comprehensive ecosystem to facilitate millions of our users of digital assets.”

According to Radio Pakistan, Sheikh told his US counterpart that Pakistan viewed cooperation, coordination and collaboration as central to building what he described as a “new economy,” and expressed interest in learning from international regulatory experiences. The broadcaster said the ambassador also welcomed what he described as US leadership in shaping global approaches to digital finance and blockchain regulation.

Pakistan’s move to formalize digital asset regulation comes amid broader economic reforms under an International Monetary Fund program, with authorities under pressure to strengthen financial controls, improve transparency and manage risks linked to emerging technologies. While officials have framed the crypto framework as regulation-first rather than promotion-led, analysts say its implementation, particularly enforcement and coordination with the central bank, will be closely watched by international lenders and investors.

The US meeting did not announce any agreements or joint initiatives, but Pakistani officials have indicated that further engagement with international partners is planned as the country develops detailed rules for licensing, taxation and compliance in the digital assets sector.