FROM PROHIBITION TO REGULATION: A LEGAL ANALYSIS OF PAKISTAN’S BLOCKCHAIN AND VIRTUAL ASSETS FRAMEWORK

Abstract

In just a few years, the blockchain regulation in Pakistan has come a long way from trading of crypto currency completely banned in 2018, to development of a general understanding of what blockchain technology entails, and finally to a legal framework that has been drafted in 2025 which seeks to regulate and promote both blockchain as a technology useful for efficiency, and cryptocurrency as an effective medium of exchange. This study highlights the institutionalization and effect of the newly established Pakistan Virtual Asset Regulatory Authority (PVARA) to regulate the digital asset environment as well as use of blockchain technology in various other multifaceted industries. The evidence from the sector points to the potential of this industry, and therefore the need for balanced and effective regulation is studied, such as the $25 billion digital assets market, $10.5 billion in crypto-based remittances, and the successful use of blockchain technology in food and land registration projects, all of which provide an insight into how the new technology is regulated and contributes to a burgeoning economy.