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Pakistan Approves Virtual Assets Act 2026 to Regulate Digital Finance Sector

The legislation creates the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee licensing, transparency, investor protection, and anti–money laundering standards.

Summary

Pakistan’s parliament has enacted the Virtual Assets Act 2026, laying the foundation for a structured regulatory framework governing digital and crypto-related financial activities. The law establishes the Pakistan Virtual Assets Regulatory Authority (PVARA), which will license and supervise virtual asset service providers across the country. This framework prioritizes transparency and investor security while ensuring compliance with anti–money laundering (AML) laws, aiming to formalize Pakistan’s growing digital finance ecosystem under comprehensive oversight.

Terms & Concepts
  • Virtual Assets: Digital representations of value, including cryptocurrencies and tokens, that can be transferred, traded, or used for payment.
  • Pakistan Virtual Assets Regulatory Authority (PVARA): A newly created body responsible for licensing and supervising virtual asset service providers in Pakistan.
  • Anti–money laundering (AML) compliance: Policies and controls designed to prevent illegal financial activities such as money laundering and terrorist financing.