Pakistan’s federal government has launched the Pakistan Virtual Assets Regulatory Authority (PVARA), a new body tasked with overseeing the country’s digital asset industry.

According to a Tuesday report by English-language local news outlet Dawn, PVARA will operate as an independent regulator tasked with licensing, monitoring and supervising virtual assets service providers. It will also ensure compliance with international standards, including alignment with guidelines from the Financial Action Task Force (FATF).

The report follows a late May announcement by Pakistan’s Ministry of Finance, which endorsed the creation of the regulatory body. Muhammad Aurangzeb, Pakistan’s Federal Minister for Finance and Revenue, said that the country “must regulate not just to catch up, but to lead.”

“We are creating a future-ready framework that protects consumers, invites global investment, and puts Pakistan at the forefront of financial innovation,” Aurangzeb added.

A statement by the country’s Ministry of Finance, quoted by Dawn, described the approval of PVARA’s creation as “a critical inflexion point.” The move is part of a broader push by Pakistani authorities to expand into the crypto and digital finance space.

The strategy has faced hurdles. Last week, the International Monetary Fund (IMF) reportedly rejected a proposal by Pakistan to offer subsidized power to energy-intensive industries, including Bitcoin (BTC) miners.

This followed May reports that Pakistan earmarked 2,000 megawatts of surplus electricity for Bitcoin mining and AI centers.

These efforts were led by the Pakistan Crypto Council and supported by the Ministry of Finance.

In early June, Pakistan’s Minister of State for Crypto and Blockchain, Bilal Bin Saqib, met with Brandon Lutnick, the chairman and CEO of Cantor Fitzgerald, and New York City Mayor Eric Adams.

During the meeting with Lutnick, Saqib discussed “tokenization, Bitcoin mining, Pakistan’s Web3 future and avenues of collaboration.” Similarly, during the meeting with Adams, the two explored collaboration between New York City and the Pakistan Crypto Council.

Also in early June, Saqib met with Robert “Bo” Hines, executive director of US President Donald Trump’s Council on Digital Assets, during a visit to the White House. Cooperation on crypto initiatives, such as Pakistan’s mining operations or Bitcoin reserves, dominated the discussion.