Pakistan has formally established the Virtual Assets Alliance of Pakistan (VAAP), an industry-focused initiative aimed at promoting investor protection, cybersecurity awareness and transparency in the country’s growing cryptocurrency market. The alliance was announced during a press conference held in Islamabad, where industry representatives outlined plans to bring cryptocurrency users, businesses and other stakeholders onto a common platform. The initiative is intended to encourage responsible practices across the virtual assets sector, improve access to reliable industry information and support discussions on the development of Pakistan’s digital asset ecosystem.
Speaking at the press conference, Syed Ehtisham Hamdani, Country Manager of cryptocurrency exchange HTX, said the alliance aims to create a common platform for cryptocurrency users and businesses operating in Pakistan. He explained that cooperation among market participants would be important for addressing industry challenges, improving awareness and supporting a more transparent cryptocurrency environment. Hunza Asif, founder of Asia Web3 Alliance Japan, has been appointed as the first chairperson of VAAP, while Hamdani will serve as its senior vice chairman. Their appointments establish the initial leadership structure of the alliance as it begins its work within Pakistan’s virtual assets industry.
Hamdani also highlighted Pakistan’s position in global cryptocurrency adoption, stating that the country ranked third worldwide in this area. However, he noted that estimates suggesting approximately 20 million cryptocurrency users in Pakistan have not been independently verified. The absence of independently confirmed figures presents a challenge for understanding the actual size and structure of the domestic cryptocurrency market. Reliable information about the number of users, their participation and market activity is important for businesses, researchers and policymakers seeking to assess developments in the digital assets sector. The alliance has identified improved data collection as one of its priorities to address this information gap.
To support this objective, VAAP plans to collect more reliable industry data and promote independent research into Pakistan’s cryptocurrency market. The organisation also intends to strengthen cybersecurity education and encourage cooperation with local institutions. These efforts are expected to focus on improving awareness of digital asset-related risks, promoting responsible participation and helping cryptocurrency users better understand cybersecurity threats. As digital asset platforms and services become increasingly relevant to financial technology discussions, awareness of online security, account protection and potential risks remains an important consideration for market participants.
Investor protection is another central area of the alliance’s proposed activities. Cryptocurrency markets involve risks associated with digital transactions, online platforms and changing market conditions, making transparency and informed participation important for users. By bringing industry stakeholders together, VAAP aims to encourage responsible market practices and provide a platform for discussions on issues affecting cryptocurrency users and businesses. Its planned research and data initiatives could also contribute to more evidence-based conversations about the opportunities and challenges associated with virtual assets in Pakistan.
The alliance has clarified that it does not possess regulatory authority and does not operate with government endorsement. Its role will instead focus on industry cooperation, cybersecurity awareness, investor protection and evidence-based policy discussions. This distinction separates the organisation’s proposed industry coordination activities from the formal responsibilities of government and regulatory institutions. VAAP’s establishment therefore represents an industry-led effort to encourage dialogue and responsible practices rather than the introduction of a new cryptocurrency regulator.
The formation of the Virtual Assets Alliance of Pakistan comes amid growing attention towards cryptocurrency adoption and the broader development of digital financial services in the country. By prioritising reliable data, independent research, cybersecurity education and investor awareness, the alliance aims to contribute to a more informed and transparent virtual assets ecosystem. Its ability to bring users, businesses and institutions into a shared discussion platform will be relevant to its stated objectives as Pakistan’s cryptocurrency market continues to develop.
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