Pakistan has officially established a legal framework for digital assets following Parliament’s approval of the Virtual Assets Act 2026. The legislation marks a major milestone in the country’s ongoing economic reform agenda under its programme with the International Monetary Fund.
The new law formalizes the statutory status of the Pakistan Virtual Assets Regulatory Authority (PVARA), which was initially created through a presidential ordinance in July 2025. PVARA is now empowered to license, regulate, and supervise all companies providing virtual asset services, including cryptocurrency exchanges and digital asset platforms operating within Pakistan.
Officials say the act is intended to bring clarity and oversight to Pakistan’s digital asset ecosystem. By establishing clear regulatory guidelines, the government aims to reduce risks associated with unregulated trading, protect investors, and encourage responsible growth of the crypto sector.
The Virtual Assets Act 2026 also aligns Pakistan’s financial sector with global standards, supporting transparency and compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This move is expected to bolster investor confidence and attract legitimate players to the local market.
Industry experts have welcomed the legislation, noting that it provides legal certainty for startups and crypto platforms seeking to operate in Pakistan. Previously, the lack of a formal regulatory framework limited innovation and left the sector vulnerable to unregulated activity.
PVARA will now oversee licensing, compliance monitoring, and enforcement of rules for digital asset service providers. The authority will also set operational standards, conduct audits, and ensure that platforms adhere to international best practices for security and consumer protection.
By regulating cryptocurrencies and other virtual assets, Pakistan aims to foster a safer, more transparent, and accountable digital financial ecosystem. The legislation is expected to create a foundation for sustainable growth of fintech innovation while protecting investors and strengthening the country’s financial sector.
