The federal government has formally operationalized the Pakistan Virtual Assets Regulatory Authority (PVARA), a body established to oversee the growing virtual assets sector. In a key development, officials from the Federal Board of Revenue (FBR) will now be deputed to the authority to ensure effective supervision in areas such as market surveillance, risk management, and anti-money laundering compliance.
According to a notification issued by the FBR on Thursday, the first meeting of the PVARA Board focused on immediate steps needed to make the authority fully functional. Board members agreed that additional human resources would be provided on a temporary basis to enable the regulator to begin carrying out its core mandate without further delay.
The notification acknowledged that, until now, no officers had been assigned to PVARA, which had hampered its ability to perform key functions. This lack of staffing contributed to delays in implementing the authority’s responsibilities, despite its strategic importance for Pakistan’s financial ecosystem. Officials emphasized that strengthening PVARA is not only vital for domestic economic stability but also for enhancing Pakistan’s global reputation in regulating new and emerging financial technologies.
The decision to involve FBR officials is seen as a crucial step in bridging expertise between taxation authorities and the oversight of virtual assets. By leveraging the FBR’s institutional experience in compliance and regulation, the government aims to ensure that PVARA can address concerns related to financial crimes, particularly money laundering risks associated with digital and crypto assets.
Analysts note that Pakistan, like many other countries, faces mounting pressure to introduce robust frameworks for regulating virtual assets. International watchdogs such as the Financial Action Task Force (FATF) have consistently highlighted the need for countries to strengthen oversight of digital financial flows to prevent misuse by illicit actors. The operationalization of PVARA is expected to play a significant role in addressing these concerns while providing a structured pathway for innovation in fintech and blockchain solutions.
The government has positioned PVARA as a central authority responsible for regulating exchanges, service providers, and other stakeholders in the virtual asset space. Its objectives include promoting transparency, safeguarding investors, and ensuring compliance with both national and international standards. Market participants, however, stress that the authority must be adequately resourced to function effectively, warning that a regulator without proper capacity could hinder rather than facilitate growth.
With the FBR now actively contributing staff, PVARA is expected to accelerate its operations in the coming months. The move signals a broader government push toward formalizing digital finance oversight, balancing the potential of virtual assets with the need for financial integrity and stability.
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