Pakistan Virtual Assets Regulatory Authority (PVARA), on Friday, introduced a framework for testing crypto to oversee digital assets, enabling companies to experiment with new products and services under official supervision.
This initiative, officially designed as a regulatory “sandbox” establishes a controlled setting where businesses in Pakistan can trial crypto-related services with the regulator’s oversight prior to receiving full approval.
PVARA has indicated that the sandbox will facilitate real-world applications such as tokenization, stablecoins, remittances, and infrastructure for on and off ramps.
Tokenization involves transforming real-world assets into digital tokens on a blockchain, whereas stablecoins are cryptocurrencies linked to a fiat currency to ensure a stable value.
The on and offramp infrastructure permits users to switch between fiat currency and digital assets, thus enabling the practical application of virtual asset products.
“The Pakistan Virtual Assets Regulatory Authority has officially sanctioned and launched its Regulatory Sandbox for virtual assets,” PVARA announced on X.
“Guidelines for the sandbox and the application process will soon be available on our website”, they added further.
Recently, Pakistan has intensified its efforts to regulate the digital asset sector and is investigating digital currency initiatives such as crypto testing frameworks as part of broader strategies to lower cash usage.
Pakistan participates in cryptocurrency finance forum
Earlier, Bilal bin Saqib, the Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA) and Minister of State, took part in a cryptocurrency event alongside leaders in global finance.
This event was organized by World Liberty Financial, a cryptocurrency initiative linked to the family of former US President Donald Trump.
Eric Trump, along with American entrepreneurs Zach Witkoff and Alex Witkoff, organized and hosted the event.
According to the announcement, the discussions during the event focused on the future of global financial infrastructure, digital assets, stablecoins, innovations in capital markets, and the changing dynamics between regulation and emerging financial technologies.
