Islamabad, August 26, 2025 – In a significant development, Pakistan is preparing to draft comprehensive tax policies to govern gains from trading in cryptocurrencies, marking a major step toward regulating digital assets in the country.
The Pakistan Virtual Assets Regulatory Authority (PVARA) held its inaugural board meeting on Tuesday, focusing on operationalizing the authority in line with international Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) standards. The meeting also discussed appointing independent directors with expertise in virtual assets and establishing a robust regulatory framework.
According to a press release issued by the Ministry of Finance, the move highlights Pakistan’s intention to embrace blockchain technology, digital assets, and the evolving global financial landscape.
Federal Finance Minister Senator Muhammad Aurangzeb, attending as a special invitee, stressed the importance of building a transparent system for cryptocurrencies taxation, ensuring both investor confidence and revenue collection. Also present were Minister of State for Crypto and Blockchain and PVARA Chairman Bilal bin Saqib, the Governor of the State Bank of Pakistan, Federal Secretaries of IT and Law, the FBR Chairman, SECP Chairman, and representatives of the National Cyber Crime Investigation Agency (NCCIA).
The board decided to establish committees for sandbox experimentation, taxation policy design, regulatory drafting, and international coordination. A draft licensing framework was presented for consultation and will be finalized shortly. To ensure accountability, PVARA also approved the creation of a complaint portal in collaboration with NCCIA for addressing virtual asset-related concerns.
Discussions further included the withdrawal of the State Bank of Pakistan’s BPRD Circular No. 03 of 2018, which had prohibited financial institutions from dealing in virtual currencies and tokens.
Finance Minister Aurangzeb hailed the formation of PVARA as a transformative milestone, stating that it will position Pakistan as a forward-looking player in the digital economy while ensuring responsible adoption of cryptocurrencies. He credited the Pakistan Crypto Council (PCC) for its extensive consultations that paved the way for regulatory progress.
PVARA Chairman Bilal bin Saqib described the initiative as a defining moment for the country’s virtual assets ecosystem, emphasizing that the authority would balance financial integrity, innovation, and investor protection.