In a bid to cement its position as a digital asset hub, the federal government's latest addition to the crypto framework, the Pakistan Virtual Assets Regulatory Authority (PVARA), convened its inaugural board meeting on Tuesday. According to reports, the meeting was attended by senior officials, including the Governor of the State Bank of Pakistan (SBP), the chairmen of the Securities and Exchange Commission of Pakistan (SECP) and Federal Board of Revenue (FBR).

At PVARA’s first session, officials reportedly approved the launch of a complaint portal in partnership with the National Cyber Crime Investigation Agency (NCCIA) to allow users to report issues related to virtual assets and receive timely redress. Reports reveal that members also discussed the possible withdrawal of the State Bank of Pakistan’s 2018 directive that had barred financial institutions from engaging in cryptocurrency transactions.

If withdrawn, cryptocurrencies and digital assets would leave the state’s gray area, officially operating in full compliance with Pakistan’s legal framework. This could also result in a drop in instances of crypto scams operating with the country, namely the Peer-to-peer (P2P) scam wherein P2P traders defraud customers by reversing bank transactions knowing the latter cant turn to the authorties for help given crypto’s legal status.

PVARA Chairman Bilal bin Saqib said that the Authority would introduce innovation along with implementing safeguards for the financial system. “Our goal is to build trust domestically and enhance Pakistan’s credibility as a forward-thinking player in the global virtual assets economy.” he remarked.

Reports indicate that Finance Minister Muhammad Aurangzeb, who attended the meeting as a special invitee, called the regulatory authority’s creation a milestone for Pakistan’s economy. Moreover, he credited the Pakistan Crypto Council (PCC) for its early role in consultations with regulators, stakeholders, and industry experts that laid the groundwork for PVARA.

Officials present at the meeting also outlined initial priorities, which reportedly include aligning PVARA’s operations with global Anti-Money Laundering and Counter-Terror Financing (AML/CFT) standards, finalizing the regulatory framework, and recommending independent directors with expertise in virtual assets. 

Reports reveal that in order to speed up progress, dedicated committees will engage with international entities, draft up regulations, work on sandbox testing, and finalise taxation policies. 

A draft licensing framework was also reportedly circulated among members for review, which is projected to be finalized soon. For its first six months, the authority is slated to meet twice a month to ensure close oversight and consistent consultation with stakeholders.