Finance Minister Muhammad Aurangzeb said on Tuesday that Pakistan was at an early but important stage in shaping its digital asset ecosystem.

He expressed the views during a meeting with a visiting delegation from Icoin Technology Inc, a Silicon Valley-based blockchain infrastructure company. The delegation was led by the company’s Chief Executive Officer Chet Silvestri, the finance ministry said in a press release.

According to the press release, the minister said Pakistan was at an early but important stage in shaping its digital asset ecosystem and welcomed knowledge-sharing and responsible investment aligned with national priorities.

During the meeting, Aurangzeb briefed the delegation on Pakistan’s ongoing efforts to develop a “structured and responsible” framework for digital assets and apprised it of the progress made toward the establishment of a Pakistan Crypto Council and the Pakistan Virtual Assets Regulatory Authority (PVARA)

“The minister highlighted Pakistan’s growing participation in global digital asset activity, as reflected in international analytics and emphasised the government’s resolve to channel this activity into a well-regulated environment that safeguards users while encouraging innovation and investment,” the statement said.

It further stated that the finance minister underscored that regulation was essential to balance opportunity with risk, particularly in light of increasing volumes of digital asset usage by Pakistani citizens.

The finance minister noted that the “evolving policy framework aims to provide clarity to market participants, align with international best practices and ensure coordination among regulators, including the central bank, to enable orderly market development and institutional participation”.

Meanwhile, Silvestri shared insights from the US and Canadian markets, drawing on Icoin Technology’s experience of working with banks, exchanges, and large-scale consumer platforms, the statement said.

He outlined how regulatory clarity in mature markets had enabled traditional financial institutions to engage with digital assets through existing infrastructure, rather than reinventing core banking systems.

According to the statement, he also explained the role of wallet-based middleware and switching technologies that allow banks to connect securely with exchanges, manage liquidity, enhance compliance, and offer digital asset services to customers through familiar banking applications.

“The delegation highlighted the transformational potential of blockchain technology and stable coins in modernising financial infrastructure by enabling faster, lower-cost and more transparent transactions, while maintaining regulatory oversight,” it said.

Reference was made to recent legislative developments in the United States aimed at bringing coherence to digital asset regulation, particularly in relation to stablecoins and the integration of digital assets within the banking system, it added.

The statement said the delegation emphasised that young and tech-savvy populations across markets were already engaging with digital assets and that regulated participation through banks helps retain activity within the formal financial system.

“The finance minister advised that, given the evolving nature of the regulatory landscape, initial engagement with interested banks and relevant institutions would be a constructive next step, alongside continued dialogue with regulators, including the State Bank of Pakistan,” it added.

Discussions also covered Icoin Technology’s global engagements, including partnerships enabling large consumer bases to access digital asset services, and the company’s interest in exploring opportunities in Pakistan in collaboration with local partners, the finance ministry said.

The delegation also sought guidance on appropriate regulatory pathways, licensing requirements and engagement mechanisms with relevant authorities, including banks and regulators, it added.

Both sides agreed to maintain engagement, explore areas of cooperation, and continue exchanges aimed at supporting Pakistan’s efforts to build a transparent, inclusive, and well-regulated digital asset market.

In the recent past, the regulation of Pakistan‘s digital asset market has been on the government’s agenda, as evident from the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA).

President Zardari promulgated the Pakistan Virtual Assets Ordinance 2025 on July 8 last year, with the stated objective of licensing, regulating and supervising virtual assets and virtual asset service providers.

Pakistan has since set up PVARA to regulate virtual-asset and blockchain-related activities.