LAHORE

Pakistan is accelerating efforts to regulate its rapidly expanding digital asset market, targeting an estimated 40 million users and aiming to secure more than $38 billion in annual remittances through a formal financial framework, officials said.

The push was highlighted at a blockchain and digital assets summit in Lahore, where policymakers stressed the urgent need to bring largely unregulated crypto activity into the formal economy.

Officials noted that millions of Pakistanis currently use digital assets through informal channels, exposing them to financial risks and lack of oversight. The proposed regulatory framework seeks to address these concerns by introducing clear rules, licensing mechanisms, and consumer protections.

The move builds on the country’s recently enacted Virtual Assets Act 2026, which established the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee and license digital asset service providers.

Authorities say the initiative could significantly improve remittance efficiency—currently around $38 billion annually—by leveraging blockchain-based systems for faster and cheaper cross-border transactions.

Analysts view the development as a critical step toward integrating Pakistan into the global digital finance ecosystem, while also aligning with international compliance standards and reducing reliance on informal financial networks.