Islamabad – Pakistan is taking initial steps to develop a regulatory framework for digital assets, according to a meeting held Tuesday between Finance Minister Muhammad Aurangzeb and a delegation from Silicon Valley-based blockchain infrastructure company, Icoin Technology Inc. The delegation, led by CEO Chet Silvestri, discussed the potential for responsible investment and knowledge-sharing in Pakistan’s emerging digital asset ecosystem.
Building a Regulatory Framework
Aurangzeb outlined Pakistan’s progress toward establishing both a Pakistan Crypto Council and the Pakistan Virtual Assets Regulatory Authority (PVARA). He emphasized the government’s commitment to channeling growing digital asset activity into a regulated environment that protects users while fostering innovation and investment. The finance minister stated that regulation is crucial to balance the opportunities and risks associated with increasing digital asset usage among Pakistani citizens.
Icoin Technology Inc. shared insights from the US and Canadian markets, highlighting how regulatory clarity has allowed traditional financial institutions to engage with digital assets using existing infrastructure. The company explained the role of technologies that enable banks to securely connect with exchanges and offer digital asset services to customers.
Potential for Growth and Regulation
The delegation emphasized the potential of blockchain technology and stablecoins to modernize financial infrastructure, offering faster, lower-cost, and more transparent transactions. They also noted the importance of regulated participation through banks to retain digital asset activity within the formal financial system, particularly given the engagement of young and tech-savvy populations.
Aurangzeb indicated that initial engagement with banks and relevant institutions would be a constructive next step, alongside continued dialogue with regulators like the State Bank of Pakistan. Both sides agreed to continue discussions and explore areas of cooperation to support Pakistan’s efforts to build a transparent and well-regulated digital asset market.
Frequently Asked Questions
What is the Pakistan Virtual Assets Regulatory Authority (PVARA)?
PVARA was established to regulate virtual-asset and blockchain-related activities in Pakistan.
What did Icoin Technology Inc. share with the Finance Minister?
Icoin Technology Inc. shared insights from the US and Canadian markets regarding how regulatory clarity has enabled traditional financial institutions to engage with digital assets.
What is the government’s primary goal in regulating digital assets?
The government’s primary goal is to channel growing digital asset activity into a well-regulated environment that safeguards users while encouraging innovation and investment.
As Pakistan develops its digital asset ecosystem, will a balance be struck between fostering innovation and ensuring robust regulatory oversight?
