Key Points
- Law formalises licensing and supervision of digital asset service providers
- The framework aims to strengthen investor protection and transparency
ISLAMABAD: Pakistan’s parliament has passed the Virtual Assets Act 2026, establishing a permanent legal framework to regulate digital assets and cryptocurrency-related services in the country.
The new law formally creates the Pakistan Virtual Assets Regulatory Authority (PVARA) as the statutory body responsible for licensing, regulating and supervising Virtual Asset Service Providers operating in Pakistan.
Officials say the framework is designed to strengthen investor protection, enhance transparency and ensure the integrity of the digital asset market. According to regulatory officials, Pakistan seeks to position itself within the rapidly evolving global financial technology landscape.
Under the legislation, PVARA will oversee compliance requirements, licensing procedures and operational standards for companies offering services. The Act covers services including digital asset exchanges, custody services and blockchain-based financial platforms.
The move replaces an earlier interim arrangement created through a Presidential Ordinance in July 2025, which had temporarily established the regulatory authority.
With the passage of the Act, Pakistan has transitioned to a permanent parliamentary framework aligned with international financial compliance and anti-money laundering standards.
Policy experts say the legislation reflects Islamabad’s effort to regulate a growing digital asset ecosystem while ensuring safeguards against financial crime and market manipulation.
The law is also intended to promote responsible innovation in financial technologies and encourage investment in blockchain-based services.
Governments across the world are increasingly moving toward clearer regulatory regimes for digital assets as the sector expands rapidly and attracts both institutional investors and retail users.
Authorities in Pakistan say the new regulatory structure aims to balance innovation with financial stability and consumer protection. Pakistan is moving fast to integrate emerging financial technologies into its broader economic framework.
