ISLAMABAD: Pakistan’s Virtual Assets Regulatory Authority (PVARA) has launched a regulatory sandbox designed to evaluate digital asset products and services in a controlled environment before granting full approval.
The authority said the framework enables technology firms and financial service providers to test blockchain-based solutions under direct regulatory supervision.
According to PVARA, the initiative will cover practical applications including asset tokenization, stablecoins, remittance solutions and conversion infrastructure between traditional currency and digital assets.
The regulator stated that detailed guidelines and application procedures for participation will be issued separately.
Officials say the sandbox is intended to help policymakers understand emerging financial technologies while ensuring consumer protection and compliance monitoring before broader market rollout.
The move forms part of wider government efforts to establish a structured digital asset framework and attract technology investment while improving oversight of the sector.
Pakistan has recently accelerated work on virtual asset regulation and is examining digital payment initiatives aimed at reducing reliance on cash-based transactions.
Authorities earlier also explored cooperation with international digital finance platforms on potential cross-border payment solutions linked to stable-value digital currencies.
