Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib held a meeting with renowned Islamic scholar Mufti Taqi Usmani on Saturday, focusing on digital assets and their Shariah compliance. In a post on social media platform X, Saqib described the discussion as constructive and emphasized a shared goal of safeguarding citizens from financial harm.
Constructive Dialogue on Digital Assets
Saqib stated, "We are united on one fundamental objective: protecting Pakistanis from fraud, exploitation, and financial harm." The meeting addressed the need to evaluate emerging financial technologies while ensuring protection against potential risks. Saqib highlighted that blockchain, digital assets, stablecoins, and tokenized real-world assets require careful technical assessment alongside rigorous Shariah examination.
He further noted that the digital asset sector continues to evolve, expressing anticipation for greater engagement among religious scholars, regulators, and industry experts. This collaboration aims to align Pakistan's policy approach with Islamic principles while incorporating a comprehensive understanding of emerging technologies.
Pakistan's Crypto Landscape
Pakistan ranks among the world's largest digital asset markets. According to Chainalysis' 2025 Global Crypto Adoption Index, the country ranks third globally in grassroots crypto adoption, behind only India and the United States. Contributing factors include a young, mobile-first population, one of the world's largest freelance economies, over $38 billion in annual remittances, and the growing use of stablecoins as a hedge against inflation.
The nation did not adopt digital assets as a result of regulation; rather, adoption occurred organically, and regulations are now being developed accordingly. In February 2025, Pakistan established the National Crypto Council (NCC) to develop a regulatory framework for digital assets and explore opportunities for attracting foreign investment in the cryptocurrency sector.
Regulatory Developments
The NCC was formed as part of the government's efforts to regulate and integrate blockchain technology and digital assets into the country's financial system. Its establishment followed the appointment of Saqib as chief adviser to the finance minister on crypto affairs. The council was tasked with facilitating the adoption of blockchain-based innovations and exploring ways to incorporate cryptocurrency and related technologies into Pakistan's economic framework.
In April 2025, Binance co-founder Changpeng Zhao was appointed as an adviser to the council. A few months later, Saqib announced the launch of Pakistan's first government-backed Strategic Bitcoin Reserve. PVARA was established in July 2025 through a presidential ordinance and later granted legal status through the Virtual Assets Act 2026, which formally set up the authority and its regulatory framework.
Legal and Banking Integration
Under the Virtual Assets Act 2026, measures will be implemented to prevent money laundering and terrorism financing. The authority has been mandated to license virtual asset service providers operating in or from Pakistan, regulate markets, supervise compliance with financial and security standards, and ensure alignment with international requirements.
In April 2026, the State Bank of Pakistan allowed banks to open accounts for licensed virtual asset service providers, overriding a 2018 ban. This move marked Pakistan's first formal step toward bringing crypto-related businesses into the banking system under strict anti-money laundering and compliance rules. In May 2026, Prime Minister Shehbaz Sharif directed the early and full operationalisation of an effective, internationally aligned regulatory system for the virtual assets sector to promote the digital economy and enhance investor confidence.
