ISLAMABAD:
The federal government has decided to establish the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee all matters related to virtual assets, including cryptocurrency licensing and regulation, officials said on Monday.
According to the authorities, the new body will handle the licensing process for crypto businesses, supervising virtual asset service providers (Vasp) and monitor all related activities in line with the standards of the Financial Action Task Force (FATF) and the International Monetary Fund (IMF).
Officials said the licensing process will not be completed for at least another three months, as the matter was “sensitive” and required careful compliance with international protocols.
They added that consultations were underway with countries where cryptocurrency operations are already in place. The authority’s key responsibility would be preventing money laundering. It will maintain users’ transaction histories and records, monitor customer activity and have real-time access to the information of licensed individuals.
The PVARA will also exchange information with domestic and foreign institutions, with overseas data sharing subject to federal government approval.
The authority will frame guidelines in accordance with FATF standards and will coordinate with other agencies to ensure strict compliance. It will regulate all aspects of virtual asset laws in Pakistan, oversee service providers and act as the central body for implementing rules and monitoring the sector.
