• President signs Virtual Assets Ordinance to establish PVARA
• Official statement causes confusion by terming ordinance an ‘act of parliament’
• Companies must be licensed by authority to offer virtual asset services

ISLAMABAD: The government announced on Wednesday that President Zardari had approved the ‘Virtual Assets Ordinance, 2025’ to establish an independent regulator for virtual assets and cryptocurrencies.

However, an official statement from the office of the state minister referred to it as the ‘Virtual Assets Act, 2025’, leading to confusion and concerns about why the draft law had not been moved to the National Assembly or Senate, as required for a bill to become an act of parliament.

The confusion was clarified later when the authorities confirmed to Dawn that the regulation was not an act of parliament but rather an ordinance, issued under Article 89 of the Constitution. The provision allows the president to issue an ordinance in urgent matters when both houses are not in session; such ordinances remain in effect for 120 days and do not require passage through the National Assembly and Senate.

According to the Gazette of Pakistan dated July 9, 2025, seen by Dawn, the ordinance (No. VII of 2025) was promulgated on July 8 by the president to establish a regulatory authority for the licensing, regulation and supervision of virtual assets and virtual asset service providers.

Earlier, the SAPM on blockchain and crypto said in a statement that the president “has approved landmark Virtual Assets Act 2025 on the prime minister’s advice”. It added that the government has formally approved the “act” following endorsements from the federal cabinet, the prime minister and the president.

The statement said that the law (ordinance) established “the Pakistan Virtual Asset Regul­atory Authority (PVARA), an autonomous federal body empowered to license, regulate and supervise entities dealing in virtual assets”.

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).

The authority’s board will include key government stakeholders, such as the State Bank’s governor, 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.

Two independent directors with expertise in virtual assets, law, finance or technology will also be appointed by the federal government. The board’s chairperson will be chosen based on demonstrated experience in finance, law, technology or regulatory affairs.

Under the ordinance, any person or company intending to offer virtual asset services in or from Pakistan must be licensed by the PVARA. A structured licensing regime will be introduced, with specific requirements for incorporation, operational capacity, compliance frameworks and reporting obligations, the statement added.

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

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

To ensure compatibility with Islamic finance principles, the law mandates the formation of a Sharia Advisory Committee, which will advise PVARA on matters related to the Sharia compliance of virtual asset products and services.

Licensed entities offering Islamic financial products will be bound by the rulings issued by the committee, the statement said, adding that the ordinance “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.

With this forward-looking legislation, Pakistan takes a major step in shaping a secure, inclusive and innovation-friendly digital financial ecosystem, ensuring that technological progress is matched with institutional readiness and public interest safeguards.

This milestone comes less than four months after the launch of the Pakistan Crypto Council (PCC) on March 14, marking the beginning of a new era in the country’s digital finance journey.

Finance Minister Muhammad Aurangzeb serves as the chairman of the PCC, while Bilal Bin Saqib is its CEO, holding the status of the prime minister’s special assistant and the minister of state.

Published in Dawn, July 10th, 2025