ISLAMABAD – July 12, 2025: In a significant policy move aimed at bringing Pakistan’s digital financial space under tighter oversight, President Asif Ali Zardari has signed into law the Virtual Assets Regulatory Authority Ordinance 2025, officially establishing a new body to monitor and regulate services related to virtual assets across the country.
The newly formed authority — known as Vara — will have the legal standing of a corporate body, enabling it to acquire and manage property, enter into contracts, and even initiate legal proceedings in its own name. The ordinance came into effect immediately upon presidential assent.
The central objective of Vara is to prevent the misuse of virtual assets for money laundering and terrorist financing, concerns that have grown globally alongside the rise of cryptocurrencies and blockchain-based financial services.
Headquartered in Islamabad, Vara will also have the option to set up regional offices across Pakistan to ensure widespread regulatory coverage.
According to the ordinance, Vara will have sweeping powers — including the authority to issue, suspend, or revoke licences for virtual asset service providers. It is also tasked with framing regulations to govern the sector, monitoring compliance, investigating suspicious activities, and imposing fines and disciplinary actions where necessary.
The governance of Vara will rest with a board, consisting of a chairperson and at least two representatives from the Finance Ministry and Law Ministry, respectively. Additional advisers may be inducted as needed. The chairperson and non-official members will serve a tenure of three years.
Importantly, the ordinance mandates that no individual or entity may offer services related to virtual assets without prior licensing from Vara. Violations of this provision could result in penalties and legal action, as outlined in the new law.
The creation of Vara signals a clear shift toward institutionalizing Pakistan’s engagement with the digital finance ecosystem, with authorities seeking to balance innovation and investor protection with national security and financial integrity.
