DATA & FIGURES
The population of Pakistan is approximately 231.7 million, with 96.35% identifying as Muslim, according to the 2023 census. The country's Virtual Assets Act 2026 established PVARA as the statutory body responsible for licensing and oversight of virtual asset activities, following an eight-year restriction on regulated institutions dealing with crypto.
THE SCENARIO
The regulatory shift in Pakistan comes as the country seeks to build a licensed virtual-asset sector, with the State Bank of Pakistan allowing banks to open accounts for virtual asset service providers (VASPs) licensed by the PVARA. This move has significant implications for the country's $3T Islamic finance market.
DIRECT QUOTE
"I shared that blockchain, digital assets, stablecoins, and tokenized real-world assets represent a broad spectrum of technologies and use cases." — Bilal bin Saqib, Chairman, Pakistan Virtual Assets Regulatory Authority (PVARA)
BBN INSIGHT
The Positive Side: The regulatory shift in Pakistan could provide opportunities for the growth of the crypto market, with the potential to tap into the $3T Islamic finance market. However, The Negative Side: The ruling against crypto payments highlights the risks of regulatory uncertainty and the need for careful consideration of religious views in shaping public acceptance. This could lead to increased pressure on regulators to balance competing interests and ensure that the regulatory framework is fair and effective.