Page 64 - CMA Journal (Jan-Feb 2026)

SECTOR INSIGHTS

S I

Pakistan’s Crypto and Digital Assets Sector

By: ICMA Research and Publications Department

Digital assets are blockchain based instruments that are
transforming the digital economy. Money has evolved from
barter to traditional currency, digital fiat, and now blockchain
based assets, marking a major shift in the global financial system.
Cryptocurrencies remove intermediaries and prevent double
spending, offering growth and investment opportunities. In
Pakistan, the sector is emerging, remains volatile, and operates
under evolving regulatory guidance, presenting both risks and
potential for innovation.

Key Milestones in Pakistan’s Crypto and Digital Assets Sector
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Timeline Key Develoopments
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2018 SBP issues advisory on virtual assets due to lack of legal framewoork.
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2023 Crypto trading volumes reach USD 25 billion, showwing rising adooption in Pakisstan.
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2023–24 Government transitions from an implicit crypto baan to formal reegulatory planning, driven bby FATF
and IMF requirements. .
Mar 2025 Pakistan Crypto Council (PCC) established to coorddinate crypto ppolicy and reggulatory framewworks.
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May 2025 Pakistan Digital Assets Authority (PDAA) establisheed; 40 million Pakistanis actively participaating in
crypto markets, with estimated annual volumes off USD 300 billioon.
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Jul 2025 Pakistan Virtual Assets Regulatory Authority (PVVARA) createdd to license aand regulate crypto
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service providers.
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Sep 2025 PVARA begins regulatory implementation, inccluding licenssing, AML/CFT compliancee, and
regulatory sandboxes.
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Dec 2025 PVARA grants No Objection Certificates (NOCs) too major exchaanges includinng Binance and HTX;
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MoU signed for asset tokenization.
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Jan 2026 PVARA signs MoU with World Liberty Financiaal affiliate to explore USDD-pegged stabblecoin
integration for payments.
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Mar 2026 Virtual Assets Act 2026 passed, formalizing PVARAA with full liceensing and enfforcement autthority;
planning for a Digital Pakistani Rupee as part of finnancial inclusioon strategy.
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Pakistan’s Crypto and Digital Assets Market
Overview - Pakistan ranks 3rd globally in digital asset Significance - Clear rules reduce financial and
adoption, according to the 2025 Chainalysis Global operational risks. They boost fintech innovation and
Crypto Adoption Index. Millions participate in crypto give unbanked populations access to digital finance.
markets, with annual volumes estimated at USD 300 Aligned with Digital Nation Pakistan 2026, this
billion. The Virtual Assets Act 2026 created the Pakistan initiative strengthens investor confidence, mobilizes
Virtual Assets Regulatory Authority (PVARA) to regulate capital, and connects Pakistan to the global digital
crypto service providers, reduce legal uncertainty, and finance ecosystem.
attract compliant domestic and foreign investment.
62 ICMA’s Chartered Management Accountant, Jan-Feb 2026