ISLAMABAD, July 8 -- The federal cabinet has approved the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) - a major step toward regulating the country's fast-growing digital assets sector.

According to a statement from the Prime Minister's Special Office on Blockchain and Crypto, the new authority aims to build a robust legal and institutional framework for virtual assets in Pakistan. It will operate as an autonomous regulator, licensing and monitoring Virtual Asset Service Providers (VASPs) while ensuring full alignment with FATF guidelines and global best practices.

The authority will also oversee licensing, monitoring of entities, setting technical standards, and ensuring compliance with FATF, IMF, and World...