President Zardari gives assent to Virtual Assets Act, 2025

Following endorsements from the Federal Cabinet, President Asif Ali Zardari has given his assent to the “Virtual Assets Act, 2025”.

The law establishes the Pakistan Virtual Asset Regulatory Authority (PVARA), an autonomous federal body empowered to license, regulate, and supervise entities dealing in virtual assets, read a statement.

On Monday, the Federal Cabinet formally approved the summary for the creation of PVARA, a landmark step towards establishing a comprehensive legal and institutional framework for overseeing the country’s rapidly growing digital assets ecosystem.

The authority has been granted comprehensive powers to ensure transparency, compliance, financial integrity, and the prevention of illicit activities, in alignment with international standards including those of the Financial Action Task Force (FATF).

As per the statement, the board of the authority will include key government stakeholders, such as the Governor of the State Bank of Pakistan (SBP), secretaries of finance, law and justice, and information technology and telecommunications, as well as the chairpersons of the Securities and Exchange Commission of Pakistan (SECP), the Federal Board of Revenue (FBR), and the Digital Pakistan Authority.

Moreover, two independent directors with expertise in virtual assets, law, finance, or technology will be appointed by the federal government. The chairperson, appointed on the basis of demonstrated experience in finance, law, technology, or regulatory affairs, will oversee the authority’s functions.

Under the Act, any person or company intending to offer virtual asset services in or from Pakistan must be licensed by the authority. “A structured licensing regime will be introduced, with specific requirements for incorporation, operational capacity, compliance frameworks, and reporting obligations,” it said.

The legislation also incorporates a framework for “responsible innovation by establishing a regulatory sandbox, allowing emerging technologies and business models to be tested under supervisory oversight”.

In addition, the authority may issue no-action relief letters under defined conditions to facilitate experimentation while preserving regulatory accountability.

Moreover, to ensure compatibility with Islamic finance principles, the law mandates the formation of a Shariah Advisory Committee, which will advise the authority on matters related to the Shariah compliance of virtual asset products and services. Licensed entities offering Islamic financial products will be bound by the rulings issued by the committee.

The Act also provides for the establishment of a virtual assets appellate tribunal to hear appeals against regulatory decisions.

The tribunal will function with judicial independence and a specialised bench comprising experts in law, finance, and technology.