Pakistan has formally established a legal framework for regulating digital assets after Parliament approved the Virtual Assets Act 2026, fulfilling another reform milestone under the country’s programme with the International Monetary Fund.
The law grants statutory status to the Pakistan Virtual Assets Regulatory Authority (PVARA), which had initially been created through a presidential ordinance in July 2025.
The authority will now license and supervise companies offering virtual asset services, including crypto exchanges and digital asset platforms operating in or from Pakistan.
Under the legislation, unlicensed crypto operations could face penalties including fines of up to Rs. 50 million and possible imprisonment, as the government seeks to curb illicit financial flows and bring the fast-growing sector under regulatory oversight.
The move follows a series of recent policy initiatives aimed at formalizing Pakistan’s digital finance ecosystem.
In March 2025, the government launched the Pakistan Crypto Council to shape national blockchain and cryptocurrency policy and coordinate regulation across institutions such as the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan.
Pakistan has also been exploring broader digital asset projects, including discussions with global crypto firms on tokenizing up to $2 billion worth of government assets and partnerships to test stablecoin-based payment systems for cross-border transactions.
The new law is designed to bring transparency and investor protection to a sector that has long operated in a regulatory grey area despite millions of Pakistanis participating in cryptocurrency trading and digital asset markets.
Regulation is a good thing. Too bad the regulation omits certain security measures like buyer protection from speculation and accountability of the firms.