Latest news with #CryptoRegulation
Arab News
09-07-2025
- Business
- Arab News
Pakistan enacts landmark law to regulate virtual assets, plans pilot for digital currency
KARACHI: Pakistan has formally enacted its first law to regulate virtual assets, establishing a federal authority to license and oversee crypto-related businesses, the finance ministry said on Wednesday, as the country joins a growing list of nations adopting formal oversight of blockchain-based finance. The Virtual Assets Act, 2025 creates the Pakistan Virtual Asset Regulatory Authority (PVARA), a new autonomous regulator to supervise the virtual asset economy, ensure compliance with global anti-money laundering standards and support financial innovation through regulatory sandboxes. Pakistan's move aligns with similar frameworks adopted by global peers such as the United Arab Emirates, Singapore, India, and the European Union, where regulators have introduced crypto-specific licensing, centralized oversight authorities, and pilot programs for central bank digital currencies (CBDCs). The State Bank of Pakistan has also separately announced it is preparing to launch a pilot for a digital rupee, marking a broader shift toward digital modernization of Pakistan's financial system. 'The Authority has been granted comprehensive powers to ensure transparency, compliance, financial integrity, and the prevention of illicit activities, in alignment with international standards including those of the Financial Action Task Force (FATF),' the finance ministry said, describing the powers of the new regulator set up under the Virtual Assets Act. Separately, speaking at the Reuters NEXT Asia summit in Singapore on Wednesday, Governor State Bank Jameel Ahmad said the new law would 'lay down the foundations for the licensing and regulation' of the virtual assets sector and that the central bank was already in touch with some tech partners. He said a legal framework for virtual assets was necessary to 'evaluate and manage the risk very carefully, and at the same time not allow to let go the opportunity.' In May, the State Bank clarified that virtual assets were not illegal but advised financial institutions not to engage with them until a formal licensing framework was in place. NEW POWERS The new regulator will introduce a structured licensing regime for all firms offering services related to cryptocurrencies, digital tokens and blockchain-based assets in or from Pakistan. These entities must meet operational and compliance standards and will be subject to ongoing reporting obligations. The law gives PVARA powers to combat illicit finance and enforce transparency in line with the FATF framework, a key benchmark for Pakistan, which was removed from the FATF grey list in 2022 after significant reforms. The regulator's governing board will include top officials from Pakistan's economic and regulatory institutions: the governor of the State Bank of Pakistan, secretaries of finance, law, IT and telecom, as well as the chairpersons of the Securities and Exchange Commission of Pakistan, the Federal Board of Revenue and the Digital Pakistan Authority. Two independent directors with expertise in law, technology, or finance will also be appointed by the federal government. The chairperson of the Authority, who will lead PVARA's operations, is to be selected based on 'demonstrated experience in finance, law, technology, or regulatory affairs,' according to the statement. In a nod to Pakistan's Islamic financial system, the law mandates the creation of a Shariah Advisory Committee to advise PVARA on the religious permissibility of virtual asset products and services. Any licensed firm offering Shariah-compliant services must adhere to this committee's rulings. To handle disputes, the law also establishes a Virtual Assets Appellate Tribunal, which will operate independently and include experts in law, finance, and technology to hear appeals against regulatory decisions. The legislation provides space for responsible innovation by allowing startups and developers to test blockchain-based products within a regulatory sandbox, a controlled environment supervised by PVARA. The authority may also issue no-action letters, temporarily exempting experimental projects from certain rules under defined conditions. DIGITAL RUPEE The enactment of the new law builds on recent crypto-focused developments in Pakistan. In March 2025, the government-backed Pakistan Crypto Council (PCC) was launched to support blockchain and virtual asset adoption. It has already initiated conversations with global crypto firms and plans to explore bitcoin mining using surplus energy. It has also appointed Binance founder Changpeng Zhao as a strategic adviser and plans to establish a state-run bitcoin reserve. It has also held talks with US-based crypto firms, including the Trump-linked World Liberty Financial. Meanwhile, the State Bank of Pakistan is preparing a pilot project for a digital rupee, Governor Ahmad said while speaking at the Reuters NEXT Asia summit. Pakistan was 'building up our capacity on the central bank digital currency' and hoped to roll out a pilot soon, Ahmad said. With inputs from Reuters
Yahoo
17-06-2025
- Business
- Yahoo
Ledn co-founder says crypto regulatory tailwind from the U.S. is fueling Bitcoin lending boom
Ledn co-founder says crypto regulatory tailwind from the U.S. is fueling Bitcoin lending boom originally appeared on TheStreet. In an interview with TheStreet Roundtable, Mauricio Di Bartolomeo, co-founder of Ledn, highlighted how clear signals from US authorities have ignited what he called a 'Cambrian explosion' in Bitcoin-backed lending. He noted that major regulators have moved from resistance to support — turning prior choke points into open doors for the industry. Di Bartolomeo pointed to the US Securities and Exchange Commission's recent embrace of Bitcoin ETFs and the appointment of a crypto czar as pivotal. 'The SEC has now turned into a tailwind to the space,' he said — adding that these developments send a strong message to global investors that the United States is 'open for business.' He underscored that the largest market's political will to support digital-asset firms reduces counterparty risk for borrowers and lenders alike. Regulatory clarity fuels growth Di Bartolomeo credited influential investors for raising Bitcoin's profile. He cited figures such as Larry Fink, Paul Tudor Jones and Tim Cook, who publicly back Bitcoin and have a long term view on the asset. Di Bartolomeo also noted that MicroStrategy's high-profile corporate bond issuances have popularized the idea of borrowing cash to buy more Bitcoin — a mindset that's driving demand for truly Bitcoin-backed loans. 'if you need cash-- borrow cash against the bitcoin instead,' he explained. Clients' experiences have reinforced this message. 'Every single person that has used their loans responsibly since 2018 has done well financially. This is why our clients keep coming back,' Di Bartolomeo said. Word-of-mouth referrals, he added, have become a powerful acquisition channel — loyal customers recommending Ledn to friends and family. With interest rates on Bitcoin loans trending lower, Di Bartolomeo anticipates even broader adoption. With interest rates falling and Bitcoin's market value climbing, clients can pledge the same collateral to borrow larger amounts — unlocking more cash without ever selling. He believes this dynamic, combined with regulatory support, will sustain Ledn's growth trajectory for years to come. Ledn co-founder says crypto regulatory tailwind from the U.S. is fueling Bitcoin lending boom first appeared on TheStreet on Jun 16, 2025 This story was originally reported by TheStreet on Jun 16, 2025, where it first appeared.
