Pakistan Courts Crypto: Global Partnerships on the Horizon

Pakistan’s Virtual Assets Regulatory Authority (PVARA) is actively seeking partnerships with leading international cryptocurrency firms to foster the nation’s burgeoning digital economy, according to recent reports in local news outlets.

The PVARA is mandated to license and regulate VASPs within the country. In fulfilling its regulatory duties, the PVARA adheres to global benchmarks established by organizations like the FATF, the IMF, and the World Bank. These standards ensure the implementation of robust systems to counter money laundering, prevent the financing of terrorism, and maintain strong cybersecurity protections.

The Finance Ministry estimates that Pakistan’s cryptocurrency market boasts over 40 million users, with yearly transaction volumes exceeding $300 billion.

“This expression of interest signifies our invitation to premier global VASPs, urging them to collaborate in the development of a transparent and inclusive digital financial ecosystem for Pakistan,” stated Bilal bin Saqib, Chairman of PVARA and Minister of State for Cryptocurrency and Blockchain.

Eligibility for participation is limited to companies and exchanges that are already licensed by recognized regulatory bodies:

• The U.S. Securities and Exchange Commission (SEC);
• The UK Financial Conduct Authority (FCA);
• The European Union’s VASP framework;
• The UAE Virtual Assets Regulatory Authority (VARA);
• The Monetary Authority of Singapore (MAS).

Interested applicants are required to provide detailed information on their business operations, service offerings, technological infrastructure, and implemented security protocols. Furthermore, they must disclose assets under management, revenue figures, compliance track record, and a comprehensive business plan outlining their proposed operations within Pakistan.

Back in May, bin Saqib, who was then an advisor to the Prime Minister, revealed plans for establishing a national bitcoin reserve. Pakistani authorities also announced their intention to dedicate 2 GW of excess power capacity towards cryptocurrency mining, particularly Bitcoin, and powering data centers for artificial intelligence endeavors.

These initiatives have sparked concern from the IMF, prompting them to seek immediate clarification concerning the legal foundation of these actions and the reallocation of electricity resources, given the country’s persistent energy shortages.

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