ISLAMABAD: Pakistan has moved closer to introducing a comprehensive licensing framework for virtual asset service providers as regulators continue work on a formal system for overseeing the country’s growing digital asset sector.
The progress was reviewed during the third meeting of the Pakistan Virtual Assets Regulatory Authority, chaired by Minister of State and PVARA Chairman Bilal Bin Saqib.
The meeting was attended by the governor of the State Bank of Pakistan, the finance secretary, law secretary, chairman of the Securities and Exchange Commission of Pakistan, chairman of the Pakistan Digital Authority and other senior officials.
Participants reviewed progress on the proposed regulatory framework for virtual assets, including licensing rules, institutional staffing and supervisory requirements.
According to the authority, work on human resource arrangements and licensing regulations has advanced, bringing Pakistan closer to establishing a complete licensing regime for companies providing virtual asset services.
Risk-Based Regulatory Framework Planned
Bilal Bin Saqib said the development marked an important step for Pakistan’s virtual asset sector.
He said the proposed framework would be transparent, modern and risk-based, with a focus on responsible innovation, market integrity and the protection of consumers and investors.
The system is also expected to define the conditions under which virtual asset service providers may operate, including licensing, compliance, governance and risk-management requirements.
Focus on Investor Protection and Financial Integrity
The PVARA chairman said the authority was working to create a secure and transparent regulatory environment aligned with international standards.
He added that the framework would seek to encourage innovation while safeguarding the integrity of Pakistan’s financial system.
The authority also plans to support responsible investment and the continued growth of the digital economy through clearer rules for businesses operating in the virtual asset sector.
The proposed licensing regime is expected to provide greater regulatory certainty for cryptocurrency exchanges, digital asset platforms and other service providers while strengthening oversight of financial crime, consumer risk and market conduct.
Also Read: Virtual Assets Authority Seeks Sharia Review of Crypto and Digital Assets From Ulema
Today's E-Paper