Pakistan has officially announced the creation of the Pakistan Virtual Asset Regulatory Authority (PVARA) to oversee the growing cryptocurrency sector.
Creation of PVARA
Under the new initiative, PVARA will be responsible for formalizing oversight of all Virtual Asset Service Providers (VASPs) in Pakistan. This body is expected to help safeguard consumer interests.
Significance of the Initiative
The launch of PVARA underscores Pakistan's commitment to enhancing the regulation of the digital finance sector. It is expected to influence the country's appeal for global investments. Muhammad Aurangzeb, Chairman of the Pakistan Crypto Council, noted that 'we are creating a future-ready framework that protects consumers and invites global investment.'
Expectations from Regulation
The proposed regulation featuring new compliance standards is likely to bring significant changes to Pakistan's crypto market, already seeing an annual trading volume of $300 billion. Participants expect that this will create greater clarity and enhance regional participation in the cryptocurrency industry.
The establishment of PVARA may have a long-term impact on Pakistan's digital asset market by setting new standards and shaping a safer financial environment.
