The Virtual Assets Alliance Pakistan, formally known as VAAP, was launched on 10 November 2026 at a press conference in Islamabad, bringing together crypto businesses and users on a single platform to push for safer, more transparent digital asset activity across the country. The move comes at a time when Pakistan’s crypto market is growing fast but scams and theft remain serious problems for ordinary investors.
What Is the Virtual Assets Alliance Pakistan (VAAP)?
VAAP has been formally launched to improve the protection of cryptocurrency users, raise investor awareness and promote transparency and responsible practices in the country’s digital assets industry. Think of it as an industry watchdog run by the private sector, not the government.
One important detail that most early news reports missed: the alliance clarified that it has no regulatory authority or government endorsement and will focus on responsible market practices and evidence-based policy discussions. So VAAP cannot fine anyone or block exchanges. It is a voluntary body that pushes the industry to do better.
The announcement was made during a press conference in Islamabad, where the alliance’s leadership outlined its objectives and future plans.
Who Is Leading VAAP?
Hunza Asif, founder of the Asia Web3 Alliance Japan, has been appointed as the alliance’s first chairperson, while HTX Country Manager Syed Ehtisham Hamdani will serve as senior vice chairman.
The leadership brings both a global Web3 perspective and local market knowledge, which is exactly what Pakistan’s young crypto sector needs as it moves from an informal grey zone to a structured industry.
Why Was VAAP Formed Now?
Following incidents of crypto asset theft, the formal establishment of VAAP has been announced to promote the protection and awareness of virtual asset users and to strengthen cybersecurity in the country. Crypto scams have hit many Pakistani investors in recent years, and there was no single body to coordinate a response or warn the public.
Hamdani said Pakistan ranked third globally in cryptocurrency adoption, but estimates suggesting two crore (20 million) crypto users in the country remain unverified due to the lack of independently confirmed data. That last part is crucial, the 20 million figure is widely quoted in headlines but nobody has solid proof. Collecting reliable data is now one of VAAP’s first jobs.
What Will VAAP Actually Do?
VAAP has set out a clear list of priorities for Pakistan’s crypto community:
- Data collection: One of the alliance’s key priorities is to collect reliable data about cryptocurrency users in Pakistan to develop a clearer understanding of the market.
- Investor education: The alliance aims to educate investors about virtual assets, strengthen cybersecurity awareness and encourage transparent and responsible practices across Pakistan’s digital asset industry.
- University campaigns: VAAP also plans to launch educational campaigns at universities to improve students’ understanding of cryptocurrency, blockchain technology, investment risks and digital asset security.
- Stakeholder cooperation: The organisation intends to encourage cooperation among relevant stakeholders and promote evidence-based policy discussions to support a more transparent, responsible and effective virtual assets ecosystem in Pakistan.
- International knowledge transfer: Hamdani said the alliance will help Pakistan’s digital asset industry benefit from global experience, while also promoting independent research and cooperation with local institutions.
How VAAP Fits into Pakistan’s Bigger Crypto Picture
VAAP is a private body, but it does not work in isolation. Pakistan has been building a full official regulatory stack over the past year.
The Virtual Assets Act 2026 provides Pakistan with its first comprehensive legal framework governing virtual assets, virtual asset service providers and blockchain technology, and this position is now backed by the Pakistan Virtual Asset Services Regulations 2026 and the Pakistan Virtual Asset Services Activity Specific Regulations 2026.
The government body at the centre of this framework is PVARA (Pakistan Virtual Assets Regulatory Authority), which handles official licensing. PVARA is responsible for licensing and overseeing virtual asset service providers, and on 14 April 2026, the State Bank of Pakistan also replaced its earlier restrictive banking instructions with a framework allowing banks to open accounts for appropriately licensed providers, subject to safeguards.
In short, the official government side (PVARA and SBP) sets the rules and issues licences. VAAP, on the other hand, works at the industry and community level, educating users, gathering data and encouraging good behaviour. The two are meant to complement each other. For more on how digital finance is growing in Pakistan, see our earlier piece on Pakistan remittances hitting $3.9 billion in October, which shows how formal digital money channels are expanding alongside crypto.
Crypto trading and services are now regulated rather than banned, but digital assets are still not recognised as legal tender in Pakistan. That means you can trade legally on a licensed exchange, but you cannot walk into a shop and pay in Bitcoin.
What This Means for Ordinary Pakistani Crypto Users
If you hold crypto in Pakistan, the launch of the Virtual Assets Alliance Pakistan matters in a few practical ways. First, you now have an industry body you can contact or follow for safety guidance. Second, the push to gather real user data may eventually lead to better consumer protection rules. Third, the university outreach means more young Pakistanis will learn about risk before they invest, which should reduce the number of people falling for scams.
The bigger picture is that Pakistan is rapidly moving from a country where crypto was essentially ignored by regulators to one with a layered system: a government licensor (PVARA), central bank banking rules (SBP), and now a voluntary industry alliance (VAAP). That layered approach is similar to how mature markets like the Bank for International Settlements recommends countries build crypto oversight.
Frequently Asked Questions
Is VAAP a government body?
No. VAAP is a private industry alliance. It has no official regulatory powers and no government backing. The official government regulator for crypto in Pakistan is PVARA, which was set up under the Virtual Assets Act 2026.
Does VAAP mean crypto is now fully regulated in Pakistan?
VAAP itself does not add any new legal rules. However, it works alongside an already active legal framework. Trading is formally permitted, though individual tax treatment and full consumer protection regulations are still being finalised under the new framework.
How many Pakistanis use crypto?
Pakistan ranks third globally in the cryptocurrency adoption index, but estimates suggesting 20 million crypto users in the country remain unverified. VAAP has said collecting solid data on this is one of its first priorities.
Can Pakistani banks deal with crypto businesses now?
Yes, within limits. PVARA is responsible for licensing and overseeing virtual asset service providers, and the State Bank of Pakistan has replaced its earlier restrictive instructions with a framework allowing banks to open accounts for appropriately licensed providers, subject to safeguards. Only PVARA-licensed firms qualify for bank accounts.
