In May 2025, Pakistan quietly rewrote its crypto stance by launching the Pakistan Virtual Assets Regulatory Authority (PVARA). This was a bold and unexpected move for a country that, just two years prior, declared cryptocurrencies would “never be legalized.” Tasked with licensing exchanges, setting standards for tokenization and mining, and aligning with global best practices, PVARA is now positioning Pakistan as one of the first movers in structured digital asset regulation across South Asia.
The global ripple effect was immediate. Just a day later, Israel’s Knesset held its first informal parliamentary discussion on Bitcoin. While the session didn’t yield immediate policy proposals, it echoed many of the same questions that Pakistan is already beginning to tackle: How can decentralized technologies support trade, inclusion, and resilience in regions facing macroeconomic pressure? What does national security look like in a world where financial infrastructure is no longer tied to borders? Pakistan’s pivot has pushed even countries like India and Israel to think about their own crypto narratives.
These conversations are surfacing at a pivotal moment. Bitcoin is trading above $115,000, driven by a renewed wave of institutional adoption, regulatory clarity in some markets, and post-conflict recalibration in geostrategic regions like the Middle East. At the same time, the U.S. is moving forward with comprehensive federal legislation on crypto, while countries like Turkey, Nigeria, and Argentina are recalibrating their own financial architectures in response to inflationary stress and currency volatility. Each of these countries, in their own way, is acknowledging the growing legitimacy and inevitability of decentralized financial systems.
Pakistan isn’t alone in this shift. Nigeria has embraced regulatory sandboxes to encourage fintech experimentation. Argentina’s leadership is considering open frameworks to integrate stablecoins and crypto wallets into its national economy. India, meanwhile, is quietly reconsidering its hardline stance, as its burgeoning developer ecosystem and digital commerce sector push for policy reforms.
But what makes Pakistan’s pivot particularly noteworthy is the pace and intentionality with which it moved from prohibition to policy. In under four months, the country transitioned from a total crypto ban to announcing a sovereign Bitcoin reserve, drafting legislation, setting up a new regulatory body, and inviting both domestic and international exchanges to seek licensing under its jurisdiction. All of this while signaling compliance with Financial Action Task Force (FATF) standards and building institutional muscle for digital asset governance.
This shift didn’t happen in a vacuum. It reflects broader generational and economic realities. With over 116 million internet users, 50,000 annual computer science graduates, and a digital freelance workforce of over 4 million, Pakistan is home to one of the most internet-native and globally connected populations in Asia. For many young Pakistanis, crypto isn’t some abstract investment vehicle — it’s a utility. A tool to receive remittances, pay for services, and store value in the face of a volatile rupee and limited access to foreign banking infrastructure.
For the government, the pivot also serves a strategic purpose. By embracing structured regulation, Pakistan is asserting itself in a space where few developing countries have managed to lead. It’s a geopolitical signal: that digital sovereignty and economic inclusion can coexist. And emerging markets don’t have to wait for Washington or Brussels to set the tone. In fact, by working with nations like El Salvador, initiating knowledge-sharing agreements, and engaging directly with global crypto leaders, Pakistan is helping to write the next chapter of crypto diplomacy.
As the world moves toward greater fragmentation in economic, political, and technological spheres, digital assets offer a rare, if still volatile, path toward borderless collaboration. Whether this moment triggers a global cascade of crypto legislation or merely inspires a season of experimentation, one thing is clear: crypto is no longer just an economic debate. It’s a strategic one. A matter of policy, sovereignty, and future-readiness.
In 2025, the leaders may not be the usual suspects like Washington, Tel Aviv, or Brussels. It may very well be Islamabad. And for the first time, the global crypto narrative is being reshaped not from the center of the old financial order, but from the periphery — with clarity, speed, and conviction.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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